If that was at all their thought process, then it still doesn't make any sense. Dissidia was never meant to be Psychic Force (or a replacement), and Taito had/has a healthy arcade market thanks to the X/X2 series of hardware.
They could have at least rode the bit of "resurgence hype" that the PS2 collection fostered and see what happened with a new, PS3-level game for arcades and then consoles back around 2006/2007.
It's all I can hope that maybe PF2012's port on NESiCA earlier this year may mean that some day, Taito will try again with "Project Psychic".
While I'm on the subject of PF, I might as well bring up the other arena fighter that caught my eye back during the PSX-era: "Destrega".
Before Omega Force became the "Musou/DW company" that most know it for today, they actually made a pretty nifty arena fighter for PSX that you could tell drew some inspiration from "Psychic Force". But I came to like it as its own beast, due to the much more "ground-based" take on projectile-shooting combat.
To this day, I still wish that Koei would go back and give this game another shot in a modern market. Not only would they stand to diversify their catalog a bit more, but Destrega could possibly find a following from those who already like some of the arena-style fighters that are present on the market today.