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Addressing the original question: From everything I've read about Telltale, they've found that pretty much no-one ever buys a single episode of one of their games. Its either full series or nothing. So if, say, it gets split into three $15 episodes, people are going to complain about having to pay $45 to get the full game, not being happy that they only paid $45 for three games.
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I think this is probably the biggest reason for them not to make it episodic. If the majority of people are going to just wait until the full version is available for purchase, then that ruins the point.
On the flip side though, which I think Havoc pointed out, is that it might open up room for extra story stuff or maybe even other things.