Turns out the sequel will be made! Hollywood has found the "great story" which will justify the creation of "Toy Story 3"!
Here's the plot: Woody decides that he is gay. Buzz Lightyear shows homophobic tendencies and becomes estranged from his friend. But then, Woody discovers that he is actually atttracted to Slinky Dog. Buzz has no problem with zoophilia, so everyone lives happily ever after. Oh, and Mister Potatohead struggles with a Meth problem.
Mister Potatohead becomes Mrs. Potatohead.