There are spoilers in this post, so if you haven't watched Season 2 of THE TERROR, be warned!
I just looked at the final ratings for THE TERROR Season 2, and they're not even half of the Season 1 ratings. The second season of the show, despite an unusual premise involving the Japanese internment camps in WWII (a relatively lightly explored topic in film and television) and a monster from Japanese folklore, was ultimately a pedestrian tale. I found my mind wandering during what were supposed to be tension-filled episodes, impatient for the series to wrap up.
The show was well made and decently acted, but the story itself was ultimately uninvolving. Unfortunately, there was a lack of charisma on the part of the male lead, Derek Mio; I found myself more interested in the first-generation Japanese immigrants and their response to a legend they had grown up with than the peril to their thoroughly American Nissei offspring. Unfortunately the Issei played second fiddle to a standard supernatural boogeyman.
The show also suffered from a desire to enhance the drama of the internment by portraying the white American guards and camp commander as cardboard comic book villains. A rich vein of moral conflict went mostly unmined, and as a result, the interaction between the internees and their guards lacked any real substance. There was also an attempt towards the end of the series to somehow link the dropping of the atomic bomb on Hiroshima to the story line that came off as clumsily tacked on and preachy. The one point where the series started to get really interesting, when the lead character heads off to fight as an interpreter on Guadalcanal, was ultimately cut short.
Others may have like the show more than me, and I wouldn't argue that my take is more correct than theirs, but the ratings certainly don't reflect any great interest in the series. The second season received a running start from season one, and squandered it, unfortunately. The show is on the bubble. It may well be cancelled. If it survives, I have one suggestion for the producers of the series: go back to the well. Option another Simmons property and reclaim your viewership.