To be honest I still can't fathom why they didn't just finish their originally-intended trilogy of Episodes BEFORE shutting down the entire episodic content concept altogether basically overnight. They took the time and resources to actually not only make E1, but they followed it with E2 as well, which speaks volume; to me it means that the episodic stuff in and of itself wasn't a problem (yet) during E1's development. So whatever happened internally must have (well, that's how I see it) happened either during E2's development or after.
Also, why Episodic content to start with? Shorter development time? Faster delivery of games to the consum- excuse me * clears throat * I mean gamers? The whole concept of episodic content was supposed to allow the devs to NOT stress themselves to the bones with very intensive four or five years-long projects such as it had just happened with Half-Life 2 which apparently burned them down enough for them to agree upon said Episodic Content concept to start with. Was the concept / idea itself actually bad? Was it... financially nonviable? Perhaps? Thing is Valve never spoke about it... s'not like we'd bite them if they "revealed" it? If it was mainly about money, then why bothering with Episode Two? Why not realizing they should have stopped after Episode One instead? Or maybe they were essentially developing E1 and E2 "back to back" and couldn't just stop the whole thing and basically "had to" release E2 despite their realization that the whole thing would come down to a crash?
The most important question for me isn't why Valve essentially doesn't "want to" make HL3 (or Episode 3), but more about the why, the REAL original why; what in the great bloody heck actually happened at Valve, internally, right after Episode Two was released? What makes it such a mystery to me is that Episode Two was GREAT (and as far as I can remember wasn't a financial disaster for Valve, and was the definitive Half-Life experience since the original in 1998) and its absolutely virtually-perfect cliffhanger ending just left us wanting for more. Remember? The "wanting for more" part wasn't actually "somewhere out there as a possibility" in air at the time, like an unknown, because back then we KNEW (I.E. were convinced, because never told otherwise by the devs themselves) that we'd get the "last" Episode that would conclude at least something very important within the Half-Life's world and lore (also, the "One" and "Two" after "Episode" on both titles were kind of a giveaway that "something else" would come after "Two"... just saying Valve). It was never actually announced after Episode Two that we'd never get to see "the rest", we simply...waited... and waited (hey Valve, side note, that's what happens when you don't ANNOUNCE stuff officially, people wait).
What Valve did with Half-Life was to basically just let a franchise, an IP rot over the years into the abyss of our forgotten memories. At this point in time I am usually only reminded that the Half-Life series even exists from A) myself when I actually feel like replaying the original for the millionth time, or B) from forum threads that pop out here and there in which people ask about whatever happened to Half-Life 3.
I'll tell you guys what happened with Half-Life 3: Valve.