We're going to learn more about Katie and Kristi's origins in Paranormal Activity 3, but what about the Paranormal Activity Demon itself? With Paranormal Activity: Legacy, all of its secrets will finally be revealed.
Assuming they have hidden cameras in Hell, Paranormal Activity: Legacy could tell the story of how the Paranormal Activity Demon came into existence and eventually escaped Hell by possessing Satan and making him stare at his bed all night instead of sleeping in it.
This one would be less a horror film than a heartfelt examination of an individual demon's journey toward self-discovery. Also, every horror film franchise needs to use the subtitle "Legacy" at least once.