Why on Earth (pun intended) would they need to focus the sequel on space instead of terra firma...?
Look: Hal Jordan (and his successors) are the *human* Earthling Green Lanterns of this sector. Easily the majority of their comic book issues take place right here on Earth, and even the space issues almost always revolve around an alien threat to Earth.
"Too much Earth" isn't even remotely the problem with GL. The "problem" with GL is simply that mainstream audiences aren't interested. There is nothing innately WRONG with GL in terms of story, acting, directing or concept. It is what it is: Green Lantern. And, just like in the real world of comic fandom, Green Lantern is an acquired taste that not many people ever acquired.
How GL could have benefitted:
1) Make the movie more epic, by making it longer. The battle scenes were short as hell; the training sequence virtually nonexistent. Give Hal more time to interact with Kilowog, Tomar-Re and Sinestro....show more alien GLs....give Hal an introductory shakedown mission on some alien world that doesn't relate directly to the main Parallax plot.
2) John Stewart. Seriously. GL purists will howl, but honestly, those Hollywood liberal reviewers who cast about aimlessly looking for some legitimate reason to hate the movie would have been heaping nothing but praise on it if it featured a black movie star in the central role. And face it: there's a large portion of younger moviegoers who know GL *only* through the Justice League cartoons.
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