Yes, I know the movie was Godawful, but it's developed such a cult following (thanks in no small part to MST3K) that even a musical stage show has been produced. It's been 42 years since it premiered, and since really belated sequels have been a theme as of late (Predator [in the AvP movies], Rocky, Rambo, Bambi, Cinderella, TMNT, etc.), I could almost see it succeeding in a limited theatrical release or a DTV with some smart marketing. They could even make the DVD a special edition with the first film (both original and MSTed version), the second film (with an optional RiffTrax commentary), and the soundtrack to the musical (a la NotLD 30th Anniversary).

Of course, it would have to be ultra-low budget (thus preserving the feel of the original and increasing studio appeal). I would suggest no higher than $300,000. Get a bunch of nobody actors who'll work for peanuts. Call in some favors (Hell, call in some fans). The surviving cast can even make cameos (it's not like they're busy with other projects). It would take, what, six months from pre- to post-production once the light is green? They even have justification (a rarity): the Master wasn't defeated, Mike now serves as the new Torgo (who may not even be dead), and "The End" was displayed with a frickin' question mark. I just think the time is right for some good, obscure cheese to make a comeback.