Totally agree with you. I think Bamco is thinking "Gundam games don't sell in the US!" based on the sales of Gundam games that SUCKED back in the PS2 era. They really just completely mismanaged Gundam back then in almost every aspect, so yeah, no surprise sales weren't up to par.
Gundam deserves a mulligan, and a game like Extreme VS would definitely bring a lot of people back to the franchise.