Don't be so ready to call them "morons." Merely, not as informed as we are.
After all, EVERY time somebody likes a game, they almost always hope for a sequel, and turn that hope into a "is there a rumor" type thread. See the Battlefront 3 thread, the Republic Commando 2 threads, etc. Heck the SWBF3 one came out shortly after the first game came out! People demand sequels to games they like, it never fails...
I agree though, we don't need a sequel just for the sake of a sequel. It should be worthy of the series, and not something rushed or done half-way. We don't need a rehash, but something special. I personally think there's plenty of potential in the series, such as exploring the Dark Side angle, expanding on the ideas begun in the "siege" gametype of JA, and bringing back the "morality scale" and other underutilized ideas introduced earlier in the series. Some people think too one-dimensionally with this and assume that we either have to get rid of Kyle Katarn or make it an entirely saber based game and since that would be boring and divergent, then we should give up on the series.
Of course it's really out of our hands, since LucasArts gets to decide if there's to be a sequel or not, and when, and by whom.
Frankly I think JA and JK2 DID (and do) compete with other FPS games. I'm not sure which games you mean that are only competing with other Star Wars games (Battlefront series perhaps? Republic Commando?). Even as pure FPS games, the JK series is amazing. I'm concerned with the multiplayer aspect, but even in those areas, the two recent titles are very much within the FPS tradition. It's more recent titles, outside the JK series that have failed I think.
Yet, supposed "bare bones" FPS games that are extremely hyped and popular still "Fall down" in terms of features. Compare say Doom3 with Unreal Tournament. How feature rich is Quake IV compared to UT2k4? There's something to be said about marketing potential. Anyway, yeah, what else needs to be said here...?
We could lock this one, but you're right, somebody else will just ask again in a few weeks.