Sega's policies as of late
(twitter.com)
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Well, every thing whoever in charge of the IP tried to do was a massive failure despite trying to bank on a popular factor. 2 tried for high school, 3 tried for darker story, Revolution went for bigger tits on a new Valkyria. Which is why they gave up and just redid 1 with 4.
So while there is plenty that could be done with the idea, whoever is in charge cannot manage to grasp any of them and can only repeat the fluke that was 1.
Also, it'll be a lot harder to make any game involving a Not-Jew race these days, so they can't even do that anymore.
Yeah I never really cared about the handheld games or Revolution. They were TOO anime and tropey. Literally the only ones I enjoyed were 1 and 4, both of which I think played to the strengths of the setting AND the fairly unique gameplay.
Bear in mind that the series was already basically dead after the handheld titles until Sega decided on a whim to release a PC port of the original and it became wildly popular, which basically spurred the production of 4.
I wouldn't entirely write it off for that reason alone. I suspect the only chance for a revival at this point though is if Sega dies and the IP gets picked up by a more competent publisher.