There's still a little Snicket sequel buzz happening apparently. This is what director Brad Silberling had to say:
“It was a co-production between Paramount and Dreamworks and there were studio politics and I actually think it’s going to see the light of day,” Silberling told cineFools. “[Name removed] and I, he’s the writer of… is very friendly with Mr. Snicket I should say, we stay in constant touch about it, because I would love nothing more than to do that and we’ve been hoping to, so I think there will be a chance it may take a wildly different form but I think it will probably happen.”