Munch isn't a human, so being an eighth of the way through his life wouldn't necessarily give him the mental capacity of a ten-year-old human. At two years old, he's a Gabbit teenager having completed metamorphosis from a Gabbiwog.
The reasons for his naïvity and innocence are probably just as much to do with his being exposed to races and cultures that are utterly alien to him, and not understanding what was going on. The only hint of this that made it to the game, though, was his abduction scene.
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