Phelps was killed for a reason. His voice actor, Aaron Staton of the Mad Men tv series, is probably now too expensive to pay as a voice actor if a sequel is coming. From what I have read on LA Noire, the game started development back in 2004 way before Aaron Staton became part of a critically acclaimed television series.

If anything, the inclusion of Kelso as the main character towards the end sets up the perfect sequel. I can see it now:

Inspired by Detective Phelps death, Jack Kelso joins the LAPD looking to redeem the memory of his fellow soldier in arms. Burning with a vengeance unseen before in the LAPD, Jack Kelso takes the badge to clean up the streets and the LAPD.

The game's overall story is pretty good, though it was a slow to begin. My biggest problem was the way homicide forced you to charge a suspect with homicide, i would rather of been able to charge suspects with other crimes while working the idea of an serial killer.

Ohh and OP you don't get demoted for getting to close to housing scam, you get demoted because your partner (Roy Earle) needed a fall guy to protect the LAPD's image or else the curruption within the LAPD would of been exposed. (atleast concerning Vice taking bribes from protitustion rings/ drug dealers)

Phelps was killed for a reason. His voice actor, Aaron Staton of the Mad Men tv series, is probably now too expensive to pay as a voice actor if a sequel is coming. From what I have read on LA Noire, the game started development back in 2004 way before Aaron Staton became part of a critically acclaimed television series.

If anything, the inclusion of Kelso as the main character towards the end sets up the perfect sequel. I can see it now:

Inspired by Detective Phelps death, Jack Kelso joins the LAPD looking to redeem the memory of his fellow soldier in arms. Burning with a vengeance unseen before in the LAPD, Jack Kelso takes the badge to clean up the streets and the LAPD.

Yea I know, the problem I have with the logic of the Arson desk is that the police chief is involved in the housing scam and he allowed Phelps to work the Arson desk. Either he's the dumbest criminal in the world or Team Bondi didn't see the logic behind this major section of the game. They could've just as easily suspended him or put him at another desk that had no connection to housing whatsoever.

I would say you run into the problem with game developers as storytellers.  Game developers can be immensely competent in a lot of areas, getting gameplay right, pushing the envelop in regards to graphics.  But then, on top of that, they are supposed to use this new medium and be top flight storytellers.  I believe doing this is likely too much to expect out of a team that has to do all of the above.  Of course, such teams could decide to hire really good writers, but how many of them actually understand the new medium, and are able to write for it effectively?

Given I haven't read this thread, I do agree this was one of the worse endings I have seen in gaming history. In Red Dead it made sense, but in this game it was unnecessary. 

However, I think they do leave his death as questionable, since it was closed coffin, and that typically means two things, one regards the condition of the body, the other is when you are MIA.