The difference between the original Dark Knight returns and the DK2 to me was that DKR was a fully realized and complete story that knew from the first panel where it was going. All good legends and myths must have a final act that completes them. Robin Hood, poisoned be Maid Marian shoots the arrow that finds his final resting point. Arthur sails off to Avalon to return at the time of Britain's need. These provide both closure and renewal to a character and an idea, and in some cases an era. DKR accomplished this by having Batman waiting to come on stage for one final act. His disappearance at the end provided hope for the future. Myths and legends also must reflect and resonate the time in which they are written. DKR was a reflection of Miller's view of the state of the world at the time he wrote it . By reading it, even if you didn't agree with it, you were forced to examine the real world and your place in it.
DK2, on the other hand tries to resolve the hope left at the end of DKR and by so doing diminishes it. There is never really any further development of the themes of DKR beyond that of "ultimate power corrupting ultimately". BY shoehorning Luthor and Brainiac into the plot the currency of its reflection of our times is lost. In DKR, the fear came out of the fact that the events were put in motion by "real" people, or at least Miller's reflection of them. In DK2, we have the standard comic book plot of evil villains teaming up to manipulate the world to their own ends. It was hardly groundbreaking.
In DKR, there was a linear quality to the story. Its focus, although not immediately revealed, was apparent throughout. It's why the enjoyment of reading it does not diminish with time but actually increases. Knowing how the story proceeds allows you to appreciate even more the elements that get you there.
DK2, on the other hand doesn't have that focus. It tries too hard to include random elements and tie up loose ends. It's inclusion of the original Robin in his new incarnation is a perfect example. A passing reference to an unknown fate of Grayson in DKR is turned into a extraneous incident in DK2 with weak motivation and exposition to back it up. It would have been far more satisfying to have Dick Grayson introduced earlier and developed as an actual character with understandable motivations, then to have a caricature of him summarily disposed of. It seemed like his inclusion was to provide a threat to the new Robin and answer the question as to his fate. The story would not have suffered at all if this entire subplot had been eliminated.
Finally, I found the artwork disappointing. In DKR, the power of Batman as more an idea and will than an actual man was apparent from his dominance of every panel he was in. The Bat symbol became a totem of his idealism and power. Certain images still haunt me: Superman shriveled to a husk; Bruce hunched over the wheel of his race car; Batman exploding onto the scene in full costume. In DK2, the art appeared hurried and unfinished, almost as if it was a not quite complete draft. It conveyed what was happening but no more.
Anything Frank Miller does is going to be worth reading, but he himself set the bar high with DKR ; Batman - Year One, and his work on Daredevil. While I applaud his attempt to continue the story I'm disappointed in the result.