Really? Huh. Last I heard, a Toy Story 3 wasn't likely. The logic went something like this... Pixar is under contract to do five films for Disney. Pixar makes Toy Story 2, it's a great hit. Pixar says, well, that's another movie down. Disney says wait, no it's not, our contract was for five ORIGINAL movies. TS2 didn't count. Pixar says, dangit. No more sequels, then.
Maybe things have changed since then. Or maybe Disney applied a good deal of arm-twisting, which wouldn't surprise me. Are there any further details about TS3 at this point?
A third one _could_ be cool, since the second one managed to be even better than the amazing original. But I wouldn't risk it... even though Godfather II was better than the first, Godfather III was a disaster.
You read it... you can't un-read it!