Rocksteady was morally obligated to show that Batman was still alive, even if WB wasn't. Why? Because Arkham Batman is their Batman. This is the Batman Rocksteady developed throughout an entire trilogy of games and there was no way they would kill the protagonist of their most successful project in such an anticlimactic fashion.
If WB wanted to make another Batman game, they would have handed the license to another studio and made a game set in an alternate universe but Rocksteady had to show their Batman was still alive, not just as a tribute to Kevin Conroy, but because they probably need Batman to make another game.
Some people, maybe lots of people, have said that Rocksteady should just give the Batman license to another studio that cares but I already know this song and dance. People complain about how a studio, a company or any other creative entity doesn't care about a franchise, but then they make a great story based on that franchise and people say "you know what? Maybe we were too harsh on them".
Can Rocksteady fix their reputation? Absolutely. All they need to do is play to their strengths as a developer and focus on what made them so beloved in the first place. For all we know, their next game is gonna be another Batman game that completely ignores the events of Suicide Squad, which would be perfect in my opinion.
Don't get me wrong, I really want games about Superman and the Justice League, but if Rocksteady need to go back to what worked, then a Batman game is the most logical outcome.
Just, for the love of God, don't make a game about Terry McGinnis. In the words of Ultra Magnus, "I can't deal with that right now".
