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As for the backgrounds, those are actually matte paintings more often than not, sometimes with 3D assets combined but not always. There would be no way to cleanly include those in a modern realtime engine.
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What about when Abe goes through a door and the camera follows him (like in the Paramonian Temple)? Those were all in 3D and therefore it makes sense that the backgrounds surrounding those transitions were created as 3D models as well. I didn't think any of the backgrounds were matte paintings.
They used that same technique as the character models as it gave the game a much more life like feel while still running on the technology of the time (as they rendered the backgrounds as images.)