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Who said it wasn't? All we've had is a "maybe". It'd be dissapointing if Abe HD was just AO, and there weren't any plans to HD-ify AE, since it's just as deserving of a re-make. Maybe in that case both games could be re-mastered separately and re-released as different titles.
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It wouldn't be wise to do from a marketing standpoint. They are trying to relaunch the franchise and that's done best by releasing several smaller chunks to keep people and the franchise hyped.
It would also create a small gameplay issue since the difficulty would suddenly drop back to tutorial level after the AO part.
All in all I would never have expected them to merge the games in an HD remake, it just wouldn't make any sense really. But like Glitch just said, if they are remaking AO they should also remake AE. It would be weird not to.