I think it's more likely a combination of too much work for too little reward. You'd either end up with an uninteresting system where you can kill half the continent but no one responds to it, or seeing progress slow down even more than it already is as they write a ton more variations for each area. We've already seen how this tends to go with the flood of mainstream games with moral choice systems around the 2010s, lots of fairly forgettable games because the narrative had to accomidate both the white knight and the puppy stomper.
They were aimed on casual gamers, which doesnt want or need complicated 'roleplaying'. You killed Hitler? You did a good thing, heres your +5 to karma. You spared Hitler? You did a bad thing, here is your -5 to karma. Simple and easy, both for gamer and for developer/writer. And also hyped popularity of DnD with it chaotic-lawful and good/evil alignment.
CoC2 also made with a thought of casuals, both furries and gamers. I mean, generic CoCII players will meet 'Canine dick, covered in slime, with a duo of knobs at the base and a sheath' with something like 'Oh yes please!!! Give me two!!!'.
But 'Canine folds, in a shape of a fortune cookie, with a translucent string of a lube hanging from it' will be meat with something like 'Are you fucking sick fucking motherfucking fuck, for fuck sake??? Get some fucking help!!!!!!!!!!!!!!!1111oneone
FUCK!!!!!'.
Same with moral choices, more 'game' thing. Player is able to do 'good' things, as in others casual games