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Sequel, I can't remember a single prequel in video games that outshined it's "predecessor" in story matters. You already know what's going to happen, so that sense of suspense is completely lost.
Dunno, I personally felt that Halo: Reach was more engrossing than Halo 3.
Also, Lufia II: Rise of the Sinistrals is widely considered to be vastly superior to the first Lufia, despite most fans already knowing how it ended since the first game pretty much spoiled it within the first 10-15 minutes.