People don't like Die Hard 2 and Die Hard With A Vengeance? But they're awesome, with all the explosions and terrorists and Bruce Willis and Samuel L. Jackson being bad-ass and what not. 8)
My personal favorite genre of movies is
Good Triumphs Over Evil But Not Before A Whole Bunch Of Stuff Blows Up.
I used to give out annual awards for the best, I think Die Hard and With a Vengence (but not Die Harder) won for their years. I'll have to dig up that list and check it again.
More recently Iron Man 3 has a crowning moment of awesome where (spoiler ahead, but it's early in the movie so it doesn't spoil that much) Iron Man destroys a helicopter with a piano. Apparently, piano > helicopter. Not sure why I'm bringing this up, but it was just so amazing.
Movie sequels usually suck because they're just exploitation, envisioned only as a way of making money off of the success of another movie. Often the original cast/director will back out for sequels, reducing the chance of quality even more. The exceptions are sequels that are within the scope of the story as it was originally envisioned, like Empire Strikes Back or the Lord of the Rings sequels.
I think some of it is just a selection effect, though. They only make sequels to really good movies (for the most part), so even an average movie is going to seem bad in comparison. My favorite sequels, in addition to some of those RockyRaccoon mentioned, include
Hellraiser 2
Dawn of the Dead (sort of a sequel)
Matrix 2
Clerks 2
Both Austin Powers sequels
Movies that were severely cheapened by the existence of a sequel:
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