The first pre-rendered videos released for Munch's Oddysee were not done on PS2 - Oddworld Inhabitants held back from even going near the machine for as long as possible, because they knew there was always the chance they wanted to move to another console.
As for there being no Munch, I'd guess they were just trying to with-hold the excitement of seeing Munch, prefering instead to demonstrate how gameplay would be transfered from 2D environments to 3D, and how the environments themselves would operate. Maybe they hadn't sorted out a definite version of Munch, but then that wouldn't make sense, considering there were 3 other types of Fuzzles we saw before the current ones.
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