At first I thought it was totally out of the question. But if they use zones like last time, and if they restrict both party members to the same zone, and they reduce gore and bodies disappear like in L4D split screen. Maybe, still very very unlikely, but maybe.
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The other thing to look at regarding Co-Op would be Dynasty/Samurai/Orochi warriors, which is third person, involves a lot of on-screen enemies and a large variety of effects.
If you remember, Dead Rising didn't render all of the enemies in an area at once. In Paradise Plaza alone, enemies popped into existence all the time. Co-Op on DR2 is possible, but the draw distance would be much smaller, since a single box has to render two sets of zombies/objects at once.
System Link and Live would allow a shared or distributed burden, making it easier to render without a frame-rate drop.
Parsons: "'The art of fighting without fighting'? Show me some of it." Lee: "Later."