New 'n' Tasty was not re-built because they simply didn't have the resources to do it. There was not enough money or time to rewrite the story, much less to come up with new level designs and stuff like that. NnT is what gave OWI the means to go big with Soulstorm. Before that they were essentially broke.
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The Oddworld Wiki
When one person suffers from a delusion it is called insanity. When many people suffer from a delusion it is called religion.
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