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Not necesarrily.
It depends how you look at it.
If you think the characters making a difference, and everyone going hooray peace on oddworld! Love and...other such shit! would the the 'optimal' kind of happy ending.
BUT, seeing as they're trying to save Oddworld, it could end up with all the characters being massacred/giving their lives, but the planet becoming balanced and natural again, thus could be considered a good ending. (That examples a bit extreme, but do you understand what I mean?)
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Well yeah, it dose depends how you look at it. Die or not it'llt still be the right happy ending as long as there's balanced on oddworld, becuase that is most inportant. It will change the way oddworld is, which means we won't see the same heros fighting for the same things again.
If you look at AE's ending, it's dosn't seem that happy becuase there are still problems to be contuined, it won't be the same at the end of whole story.
I just don't think it's very fair that the lovable bottom of the food chain unlikey heros die in the bad at the ending, well they might, if thinking someone like Jesus. Jesus got torchord, which isn't fair becuase he's bring good things to keep balance or whatever he did. Prehaps the Heros will rise on top of the food chain like becoming a god after they die, so they risen on top of chain. Like Xavier said before, Abe being crucifixed at the end of the Quintology. If they die in that way, then Lorne Lanning done a good job making it sad, but aslo making us realise about our world of globalization.
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"For us, it's not about muscle bound characters with big guns. It's about little guys "
~ Lorne Lanning 15/02/2000
"We knew there were more of us out there, and were gunna find them!" ~ Abe