It's the only Shyamalan movie I really like. I'd like to see a sequel if he can get back to that 1999 "journal." He's already been beaten to the punch with some of the ways he could continue the story. Kick-Ass and even Heroes sort of explore the "heroes in a real world" theme.
Let's be real.. he's thinking of it because he's desperate for a freaking hit. Disney looked at the script of "Lady in the Water" and passed, told him it'd bomb.. he went on every radio program nationwide and proclaimed how brilliant it was... bomb. Then the new film, The Happening - it's basically a remake of "The Birds" except changing the unusual bad guy. Except it's one of the most boring films I've sat through. Absolutey no fear attached at all.
If M. Night had a shot to direct Spy Kids 4, he out to take them up on it.
It's the same thing when Kevin Smith bombed with Jersey Girl and he went back to his same old retarded characters/world... and when Guy Ritchie tortured everyone with Swept Away he went back to the gangster world.