1) its a reboot. original PoP Zero was going to be modern day and was code named PoP Zero. Hence this reboot is going to be PoP Zero 2.
2) POP 2008's sequel assets were used in making POP TFS Wii.
3) God of War - lite
4) Ubi was working on a new IP for next gend that would have been like God of War meets Shadow of the Colossus. I think they have decided to make it the POP 2 remake.
Remember, before E3 started (6/1/2012), the first details leaked from behind closed doors:
PR department of the French publisher Ubisoft made a serious blunders: journalists accidentally showed footage from the teaser clip of the new game in the universe of Prince of Persia. However, in an eerie and without any details, but the fact remains that the development of the next game in the popular adventure series is in full swing. In the presented frame, we saw a bald warrior (his face is hidden shadow), armed to the teeth and "packaged" in a strong leather armor.
This story would have ended well, if not in the camp of Ubisoft showed someone with a very long tongue. The source within the company, said that the announcement of the new Prince of Persia was to be held behind closed doors and only for a select group of English-language press. Now the publisher is in a difficult position: to work as originally planned, will not work - fans of the series will eat with giblets. So it seems to be a full-blown announcement is still to take place.
And now a couple of parts. First, the next Prince of Persia will not have any relation to the previous series. None of the successful trilogy, nor to the secondary and boring Prince of Persia: The Forgotten Sands. If you remember, the latter was to become the first game of the new trilogy. But the low ratings from critics and sluggish sales have forced Ubisoft to abandon further work on a series of clearly failed. Now we are waiting for something closer in spirit to such TV series as the God of War and even Assassin's Creed. Second, the new release will take place not earlier than the end of next year. According to a source inside the company, publishing barely started working on the game. So that at least half a year to develop them still want it.
At least Jake Gyllehal didn't kill the franchise. No more child acid-trips with 2008's PoP and hopefully no sparkling sci-fi effects/story breaking the medieval Abrahamic world (a'la Assassins Creed). I wonder how the God of War part will play like (very excited to hear though).