While Wally was my favorite, I don't see why they would given that he was essentially inconsequential to the overall story during the two seasons we got. His entire purpose appeared to be a plot device for Artemis (and, to a lesser extent, Dick and Bart), and when he took her as far as he could, he got both fates (written out/killed) that most plot device character usually end up getting.
Honestly, the show's lackluster handling of the events leading up to his death is why I'm not all that excited by the news about season three at the moment. I had no problem with him dying, but it felt like the was nothing of substance or worth behind it because of the way they handled everything leading up to it.
As for the team in general, I assume the roster is going to continue to be as big, if not bigger, than it was in season two. Hopefully they're able to handle the large cast better this time around if that turns out to be the case.