On a technicality, Hollywood ran out of ideas decades upon decades ago. They make the same movies (either literal remakes or similar storylines) because there's nothing else to make. Everything's been done. Even the Star Wars movies, the original ones, took from samurai, cowboy, and Flash Gordon movies. That meme drives me nuts because, let's face it... we're out of plots and plot twists. That means we'd never see movies ever made ever again. Who wants that?
But "running out of ideas" is not why Disney ever did cheapquels. It's more like "running out of revenue streams." The only reason why we're getting Air Buddies 6 and Chihuahuas 3 are because Lassiter put a stop to the animated DTV movies. They said nothing about the live action films... and on the plus side, they don't cheapen the films they came from because those films were crap to begin with.
Look at Hunchback of Notre Dame 2. That completely confounds the Victor Hugo legacy in a way a family friendly ending can't. It's bad enough (though understandable) that Esmeralda and Quasi both live (like Disney's going to do a movie where Quasi buries himself alive), but to have a happy, peppy sequel that makes no sense whatsoever? I mean, Lion King was lucky. Lion King 2 was actually quite good, almost shockingly good. The Aladdin sequels weren't too bad (though Robin Williams saved the third one)... I liked Extremely Goofy Movie, despite the constant ESPN commercials... but some of these films were just confounding and retreads of the last film.
So, in a way, I'll forgive the live action cheapquels. At least George of the Jungle 2 was kinda funny. Still had the Jay Ward spirit more than Dudley Do*Right.