Rockband.com Forum: Season Two - Who Will It Be? is really the best place for the latest info. It's where the TWOP people settled when their thread was shut down.
The show went something like ten weeks and with the bottom 3 singing INXS songs each week there was a lot of repeated songs. This makes the major requirements for a band to a) need a lead singer and b) have a prolific back catalogue. Not many bands qualify.
I read they may be putting together some kind of super group of famous musicians not currently in bands. I've also read that they will change the format up a bit as they don't like the worst singers singing the bands songs week after week.
BTW guess who's SAG elligible now? Too bad I couldn't have had that kind of luck as a writer.