I don't think most people really would have cared much if an old 2D version looked nicer, especially since the predecessor was a Genesis game and this is N64.

I also don't think being 1999 would have a good year to bail on it looking at the US releases that year. I'd almost wonder if they were more intimidated depending when it could have come out. Bomberman 64 2nd attack, Castlevania Legacy of Darkness, C&C, DK64, Duke Nukem, Harvest Moon 64, Hybrid Heaven, Magical Tetris, Mario Golf, Mario Party 2, Ogre Battle, Pokemon SNap, Pokemon Stadium, Quake 2, Rayman 2, Revolt, Resident Evil 2, Shadowman, Star Wars Ep1 Racer, Super Smash Bros, Top Gear Rally 2, Winback, and World Driver Championship are just some of the more notable titles of that year. N64 was fresh off being screwed in 1997 and through 98 and getting games again. 2000 had almost as healthy of a year with many big hitter franchise titles as well. I just don't think N64 looking dead would have been a good excuse as it really didn't dry out until very late in 2000 and fell off a cliff after Christmas.