Yep, it killed the franchise.

Still I think that had more to do with the first film being a mash up of the first Spiderman movie and Batman Begin that didn't quite get Peter's character right(I mean he steals from a store just because he has had a bad day? He is fine with letting a guy get hauled off by the police for a crime he didn't commit? This is not the Peter Parker I know at least it wasn't before One More day and everything had to be dark and gritty)and the second film being completely unfocused and not really having a story. it has a plot but not a story.

There were moments in both films where i thought he could work, but sadly the scripts were a disaster and that doomed the franchise.

Still it is funny to read old articles where people all assume this franchise is going to be the next big unstopable thing.