It's starting to look like you'll be able to make damn near anything you can think of with the content creation tools in LittleBigPlanet 2. At an in-depth demo today, Media Molecule's Alex Evans talked almost solely about all the new ways this sequel will let you create your own new levels and game types. He didn't even really take the time to show off the developer's pre-made story mode that will be in the game. That ought to tell you where the developer's focus is in this sequel.
I wish I could properly articulate what it's like to listen to a brilliant guy like Evans wax technical about all the new stuff in this game, but really, you'd have to hear it straight from him to get the full effect. I can tell you that the cap on objects, triggers, and other elements in your levels has drastically increased. I can tell you that sorting, searching, and downloading user-created stuff is going to get a lot faster and easier both in the game and on a new website called LBP.me which will be launching with the game (the latter will give you a social feed of your friends' creations and even let you queue up downloads that will begin automatically when you boot up the game later).
I can tell you that you can pull up a floating circuit board of all things to wire functionality directly into your creations. Want to make a car? Pop up the Controlinator (a Dual Shock-shaped circuit board) and wire the controller button you want to be the accelerator to the rear wheel of your vehicle. You can also finally add real non-playable characters (sackbots) to your levels instead of making those creepy fake characters out of background elements. Those guys can take scripted behaviors and voice acting, and you can control camera angles to make cutscenes.
The list goes on and on. You'll be able to make your own music, via some kind of in-game editor Media Molecule isn't talking about yet. You'll be able to link levels together, so you could upload a whole sequence of levels together to form a linear playable episode, or maybe a best-of level that serves as a gallery for a bunch of other hot new levels. My only thought in looking at all this potential is that Media Molecule had better be careful and not empower the players too much, or they may never have a reason to buy a LittleBigPlanet 3.