"What about Hades merits refining an existing formula, rather than writing a new one?"
It probably wasn't about trying to be better than Hades. It was just about making more. More story, more characters, more music. More art. The developers clearly love the work they did with Hades and wanted to do more of it. Their past games all had incredibly beautiful stories and art, but something about this series really resonates with so many people. Greek mythology is so deeply ingrained into western culture that any modern artistic representation of it, executed well enough, feels at once familiar and mystical, a connection to an ancient past that we all share through our cultural lineage. Supergiant's work brings these classic figures to life in a way that's never really been done before.
That said I think I agree that the gameplay might be a little overcooked, but I think it's possible to ignore a good amount of the crossroads stuff if all you want to do is run through the game and beat the bosses. Having more to engage with is great for those who want it.