From Inafune's video, it sounds as if he had trouble getting TPTB at Capcom to support making another Legends because of the low-profit margin. Perhaps developing it for a handheld might cost less? I can only guess, but I'd have to admit that it would seem bizzare for Megaman to have a home console release these days. I'd love it if Legends were the game that Level-5 was working on with Capcom, but I doubt that's the case.
Legends was a game that got a lot better as the game went on; it wasn't as fun as long as you just had your basic abilities, but once you did get a few of the upgrades, the gameplay did really open up. The strange part about it was that you usually had to go grind or farm for Zenny in order to fund your upgrades. It's been a long time since I've played any of the games, but I really loved the character design, the humor, and the boss encounters. For a PS1-era game, some of them were larger than life.
Stratos, the game was pretty decent. It and MGS were probably my two favorite games in the Playstation platform...perhaps that's because I never got around to trying Symphony of the Night.