As others have told you, yes C2 can make rpgs. The reason you haven't seen many is because RPGs are quite complex, and I'm afraid I must disagree with megatronx on this one, they are quite hard to make due to what Aphrodite said - they have a ton of interlocking systems that all need to work smoothly together. They look simple from the outside (I thought one would be simple to make too. Years later, it still boggles my mind how long my rpg has taken - but then again I had almost no game making experience at all when I started on it), but general opinion from those why try to actually make them is that they're one of the most difficult genres around (unless you're using a tool that has a lot of those rpg systems in place already, like rpg maker).
Here's a video of the old construct classic version of my rpg (don't even start to consider using construct classic over C2 for an rpg. Trust me. There are reasons why I started over in C2 even after years of work - it's vastly superior and more stable than CC). The C2 version looks very similar to this, but the ui and stuff isn't done yet:
I came across that video when I was searching around for information on using C2 for RPGs, and while I commend how polished it looks, it is quite different on a number of levels from what I'm planning.
The reason I'm hesitant to use something like RPG Maker is that all of the games it produces seem to have a very Pokemon-style approach to the genre. There's a town area where the player directs an avatar to move around, sprites for every NPC, etc. I'm effectively eliminating that entire element of the game, since, for mobile, I find that the avatar movement mechanic is clunkier than what the HID allows for, and better paradigms for travel and world-interaction can be explored.
When you say that they have a lot of "interlocking systems" that have to come together, do you mean that in a technical sense (getting objects to instantiate, interact, etc, properly from a programming perspective), or in a mechanical sense (make sure that a +1 to attack doesn't stack in a certain way to make characters be able to one hit everything)?
If it's the latter, I've already developed the core system (Attributes, skills, to-hit stats, item balance, etc) to the point where I'm confident in the relative stability of the mathematics. You're not going to have a certain build that is superior to all others in every way. That's where my experience playing, modifying and more recently writing, tabletop (pen and paper) RPGs comes into play.
If it's the former...well, there's simply work to be done there, though it seems like C2 handles events in an elegant enough fashion that it's less of an issue here than it could be.
It's not hard, just time consuming. So you're making an rpg. That's really cool. Could you say more about yourself?
There's not much to tell. I have half a degree in computer science (a minor, back in college), so I'm no stranger to programming. I spend a lot of time playing video games, but I've spent equal amounts of time playing pen and paper RPGs, so I know how those game systems work very intimately. I started out making homebrew material for D&D 3.5/OGL, and spent a little time making a ground-up conversion for the same rule set. Most recently, I've moved my own original tabletop system into its final phase of development, and I'm hoping to have that published by Q2 2014, likely with ePubs, since I don't have the budget for artists or layout designers, and have little expertise in either of those fields. Not that it matters, since I'm designing it as an extensible and modular generic system that others can build materials for or make conversions of. Kind of like FATE Core or Apocalypse World is built and licensed.
For the video game RPG I'd like to make, I've designed what I think is a better way of interacting via touch screens, built a combat/stat system complete with leveling, items and powers that maintains simplicity, but still allows for multiple character builds (in a way I find more interesting than a standard skill tree).
I'm not new to gaming, nor to software development, but the marriage of the two is uncharted territory for me.