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Yeah, those colours are weird. It wasn't at the top of my mind when I wrote the email, and I guess I'm not as sensitive or articulate about colour than as form, but I'm totally with you. The amount of grey is a noticeable point, and there is no black anywhere. The logo looks muted (low contrast?). I would guess the green, purple and orange are in triadic harmony, which just makes me think they were using their heads more than their eyes. It just doesn't work.
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I personally quite like the overall color scheme of the logo (lurid lavender/turquoise/orange are classic Glukkon marketing), but the point about low contrast is dead on. It can make for a nice aesthetic if you want a more sophisticated or mellow design, but for Oddworld (and for Glukkon-styled marketing in particular) you want lots of pop and contrast.
I tried altering the original in Photoshop. I put the Proof Setup into grayscale and blindly adjusted the saturation, levels and contrast until I had much more contrast in the greys. Then I turned color back on, and this was the result:
I think a lot of the issues with the logo come down to a lack of polish – with some more attention to detail, it could be a solid composition, but little flaws let it down.