I think that the general movie audience also, in general, liked the movie but the many fans of Godzilla hate it. For them, it was nothing like what they love in the Japanese Godzilla... Which I can see why... I mean Godzilla has been around for 50 years and there is a lot of love for him.. In general the fans complaints of the movie relate to the actual Godzilla monster been nothing like Godzilla, he doesn't really come and attack/purposefully destroy the US like his sometimes does in the Japanese films, there wasn't another giant monster for him to fight and what should be a movie about a giant monster turned into a movie about a group of humans basically running from a horde of velocoraptors...
But personally I like the film but then again I've never seen a Japanese Godzilla film so maybe that is one reason why...
Anyway I wouldn't mind a sequel but it would be a big risk for the studio because it would be one of them 50/50 things.. There's a lot of people who hate it and would kick up a big fuss about a new one been made but on the flip side it has been several years now and has sort of made its way out of public consciouness and a new one could gain interest from the general movie going audience. If one was to be made I dunno how the studio would treat it... they would either do it and not make a big fuss out of it and give it a fairly low/average budget or give it a big budget and market the hell out of it and try and compromise/make up to the Godzilla fanboys.
I didn't really mind the baby Godzilla thing in Godzilla but I think if a sequel was made that it should be about two big monsters going at it with the military stuck in the middle, cos obviously you need a human element to it and the military would have to win, cos that's Hollywood for ya... but yeah
if one was made it should definately have two giant monsters fighting otherwise there would be no point doing it.
Little bit of trivia for you...
Before the 98 Godzilla, the studio had been in talks with the Japanese Godzilla studio, Toho, for quite some time and there had been a couple previous drafts. There was to be a movie before the 98 one directed by Jan De Bont (director of Twister and Speed) which was to be a lot closer to what a Japanese Godzilla film is like where Russain military are excavatin old nuclear reactors and one explodes creating a crack in the bottom of the artic sea where a strange subtance seeps out and soon after Godzilla escapes. He comes to San Francisco and the US military finds out that the substance actually controls and inhibits Godzilla so with the use of this they capture him and transport him to NY. While this is happening a UFO comes to Earth and captures various animals and creates a giant monster (the Gryphon) mixing the various animals DNA which then begins attack the US. A scientist working on the Godzilla case is infected by the strange substance and mutates into an alien and it is revealed that he is part of a race that created Godzilla to protect humanity from the rival aliens which created the Gryphon, who come back every so often to destroy humanity. In the end Godzilla and the Gryphon fight and Godzilla destroys the Gryphon and returns to the sea.
Obvoiously this script was done to suit the US, totally leaving out the original origin of Godzilla in that he was created by the US's atomic bombs dropping on the East but I think it would have made a good movie. But this again was nothing like a Godzilla film, it was infact more or less a remake of the Gamera origin but had Godzilla in the place of Gamera. Godzilla is a monster created by man that comes to destroy man but has been known to save mankind and fight off various other monsters whereas Gamera (the giant Turtle) was created by the ancient Atlantians to protect mankind.
This can be read at
http://www.angelfire.com/ego/g_saga/tri-stargodzilla.html. It also has a review of the American Godzilla...