Stars Jemaine Clement and Bret McKenzie have revealed that they've had some creative difficulties with the second season, mainly writing new songs (and really, it would be hard to top Part Time Model). The songs used in the first season were ones that had all previously been written by the duo (they were not newly written for the show).
Says McKenzie, "The second series seems to me like it would be a good end to the show. I feel like another 10 [episodes]... that will be enough."
Then again, that's what Larry David says after every season of Curb Your Enthusiasm too, and we're about to get a Season 7, so you never know...
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Source: TV Guide