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Well yeah, admittedly MO was just a crappy game. But I`ve yet to see OWI recreate the level of immersion and storytelling they did in 2D for 3D. I also think it`s hard to make a legitimately dark-looking 3D platformer; the open space gives you a sense of freedom that OW games aren`t about. You also can`t have pre-rendered backdrops and the same graphic styles as in AE and AO in 3D, and getting Mudokons to follow you around is a pain in the arse in a 3D world; they get jumbled all into each other and it turns into a mess.
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There are plenty of dark 3D games. You don't need pre-rendered backdrops to have beautiful vistas in well-designed modern games (though in 2001 that would have been optimistic). Muds with well-designed AI would have no issue following you.
Basically, MO would have been fine in 3D if it was better made.