1) The game is still in Alpha.
2) They are trying to make the game more accessable to lower end machines; this means less animations so lower end computer can handle the character models.
3) Gameplay by the majority society is far more important then animation. I hate to say this, I like things pretty too, but if the gameplay is crap (like it was in 1.0), your just going to have another failure.
Face it, even though I would like to see "pretty" stuff, "Pretty" is just fluff. Fluff doesn't keep people playing. Gameplay does. So really, would you rather the game stay alive in the public, or would you rather have another 1.0 mess?
Just saying.