I thought it was great!
They knew what they were making and they did it perfectly, namely pure B-movie shlock. Over-the-top gore (decapitations, RZA punching people's insides out, exploding arrows), on the nose B-movie dialogue (everything that came out of Master Ho's mouth was gold), retro Shaw Brothers imitation acting, it was just a lot more fun and a lot less talky then the first one.
Plus there's just the mad randomness to it all, like RZA being asleep on a log in a river for nearly half an hour, the daughter who inexplicably wears what seems to be Native American garment and even has a Native American sounding name (Innocence), everything that came out of Cha Pow's mouth, and of course the stickler, the moment I nearly jumped out of my seat with excitement...