Gamers tend to use a console. People who can't touch type could easily struggle with a game with so many functions such as Oddworld.

The real problem was the contract they signed with Microsoft, promising to ship the game to coincide with the Xbox launch.
Without this, they could (and presumably would) have spent as much time as needed creating the game.
When you compare Munch's Oddysee to games released late in the Xbox and PS3 generation, it's a travesty. The idea that features such as transforming to Roid, using Elum, or having any AI whatsoever are technically impossible is laughable. They needed time and stupidly signed it away.

The console they chose is irrelevant. Good games exist on both Xbox and PlayStation 2, and OWI had among their staff professional programmers and designers.