Well, someone did post a link to Medierra on the GD forum back in 2011 saying this:
"We actually implemented WASD on a TQ2 prototype when I was at ILE and it was kind of cool, although a totally different game (we'd turned the camera into 3rd-person over the shoulder)."
So there was definitely work on a TQ2 being done before ILE closed. Whether THQ subsequently did more work on it and then when they went under Nordic took it and made it into Ragnarok I doubt we'll ever know for sure.