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I still haven't played God of War 2 yet (had it for a while, just haven't had the time to sit and play it) but played God of War and didn't see what the big deal was. It was a fun game and a welcome change from a lot of other games, but it wasn't this totally amazing thing. Even things like the puzzles were pretty poorly done.

As for when God of War III is released, if they haven't even started it yet, I wouldn't even dream of a 2008 release and would expect something closer to a late 2009 to early 2010 release. That's even a generous estimate.

As for Zelda, don't dream of another one until 2010.