They should try for a third sequel
To explore a situation where the main character would survive an encounter with her and to see if the witch has any weaknesses. And they should add a character with weapons for once. I would really like to see how she would react to a gun. But she should try to lure kids or another child to the woods for some reason. Give her a goal or something a purpose for luring somebody and force the relatives out with a search party with weapons and lets see that on screen. Don't know what more mysteries they could add to her legend though that we don't already know to keep things interesting.
But then again maybe nah
I like the idea that Blair Witch is the result of her trapping these kids in a loop because they decided to come out at and bother her. And that this will be the end of it all. Nobody will be stupid enough to go in again.