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Of course the sequel infamous 2 is already in the works, and so is sly copper4 that was in works before infamous launched.

The amount of effort to make sequel is less than to make engine/original game infamous demanded, the influx of cash generated by infamous is more than enough to expand the company a little and divide in two teams for each game.
They can and most likely are making Sly copper 4 and infamous concomitantly.

I would expect a sly copper 4 on Q4/2010 and infamous 2 on Q3/2011.

And sly copper4 might even have motion control.

 

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^^ All said here is a prediction based on personal opnion and should be taken as calculated guess by anyone.