Avatar's CGI might be beautiful, but yknow that one day soon an AI will be able to make thousands of Avatars; While it won't be able to replicate what PiB TLW did.

Box office isn't really what matters. The first Avatar was the highest grossing film of all time until Endgame, but few people could recall the story. It will likely be the same issue for Way of Water.

Plus, Puss in Boots made profits. That means we get more films like it in the future.