TP II saw the light of day - I still have it. It was TPIII that was cancelled, after Hasbro dumbed down Gunship! to the point where everyone hated it. Which is a damn shame, as the original plans were to have TPIII, Gunship! and one or two other games tied into a kind of total battlefield simulator.
I guess it's all kind of moot now that we've got OFP anyways. Still... I'd like to see more M1TPII or Steel Beasts features incorporated into the armor system of OFP2.