Wow Disney doesn’t waste any time shutting down promising projects. Although, in this case I think they may be on to something:

In the film, Buzz Lightyear would have been recalled to Taiwan after a series of malfunctions. Learning of a productwide recall, all the toys in Andy’s room, under Woody’s leadership, were to head to Taiwan to save Buzz from doom.

And their explanation for this decision is that:

sequels should only be made if there is a really great story that demands it, and should be the domain of those who created the original film

It’s good to see that they are restricting which scripts they will follow in future animations. I just hope they use their judgement correctly instead of putting stones over Pixar’s shoes.