You're not wrong about the writing being the challenge. But I don't think the game itself is the problem. Designing and creating a text game was challenging 30 years ago, but its a pretty easy thing to start building these days. You just need to do some really basic planning ahead. The problem is you better be prepared to write multiple novels worth of content if you want to really flesh it out.This is mostly because the level of freedom LT offers is an utter nightmare to plan, design, code and write for. It's the reason there's such a limited pool of... well, actual text.
Not a lot of devs want to make this type of game because of how massive it is, because even a relatively small project can be stressful as fuck.
Like, something like flexible survival is a good example. Look at the amount of content they have, and then realize that's because like 5+ dedicated people have been writing for it every month for like 10 years.
One of the big problems with LT is that it honestly seems like Inno doesn't really have any passion for that part of the project. Every now and then an idea will click and she'll waste a ton of time developing something no one wants, but anytime she's forced to write for the actual game, everything gets dragged out forever and no progress is made for months. Or you get shit like Nyan's quest, which I'm still convinced she had someone on the discord server write for her.