'I Am Legend' Sequel News Confusing

AICN is reporting that Warner Brothers may have changed plans for an I Am Legend prequel into plans for an I Am Legend sequel, which is odd because Will Smith the Scientist grenades himself at the end of movie. According to the tipster:

Smith is actually the one who developed the initial story. It took place several years before the original film and there were still pockets of survivors and the story centered around Smith interacting, bonding, and ultimately failing to save them. For months this was the story. Warner's didn't much care for it and Smith and Weiss eventually came on board and all parties agreed to change things up. Well this change is pretty insane, the film is no longer a prequel, it's a fucking sequel!

I'm anticipating it begins with Will Smith darting up from his bed, panicked.

"Phew, it was all a dream..."

Camera slowly pans over, revealing a vampire thing in bed beside him.

"Alright, 'Legend', can you keep it down? Some of us are nocturnal."

"AHHHHHHHH!!!!!"

Then voice-over explains how only the part where he blew himself up was a dream, the rest really did happen, and that his son Jaden is there now for no particular reason.