The reason is the same reason that so much of Munch's Oddysee didn't make it to the final game - everything from new species such as Kintos and Skeeters, to extended parts of the storyline such as the return to RuptureFarms and the rescue of Sam, to aspects and the actual game such as Munch's ability to mimic other creatures and the whole lifecycles thing.
It's because development on the PS2 was a lot harder than was originally anticipated, and OWI kept coming across many 'potholes' in the technology, which of course had to be solved, using time, money and resources which should have gone into the game. Annex onto this the fact that the Inhabitants were pretty much experimenting with the new 3D world, plus their hopping onto the Xbox bandwagon that limited the timeframe they had to work in.
This answer coming to an FAQ near you!
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