CoC 1 (+ mods) still remains unmatched in terms of the player's ability to impact other characters and their relationships. TiTS and CoC2 have better gameplay mechanics but both suffer from the fact that the writers went nuts over the idea that someone could mess with their OC. As a result characters in CoC 1 just feel more alive than CoC 2 and TiTS, even with the option to put them all into a harem.
I think a lot of these new writers are confusing extended character sheets and backstories with good characterization, without realizing that it's important to communicate that to the player through the gameplay itself as opposed to infodumps. Just little things like having NPCs acknowledge status changes from the player and other characters, to alternate dialog options based on game state would go a long way.
Been watching CoC1 rise, fall, and resurrection, so I'll be honest - dood, you just answered your own question.
First thing first - They Don't. Want. You. To have. System.
At all. You can write a splendid character, put a complex personality development, story and stuff, and they will just block it because "It's too damn heavy!"
No really, I think out of all Writers who can even risk going against them and do that shit is now only "B" remained, but even he is squeamish and is now focused on making a second dragon, an option for both frostwyrms to fuck each other but somehow not turning it into a cheating/cucking/NTR.
And don't forget about Gedan's hate towards Lane, yet this character system is simple as a stick, nor their mild hate(in form of a mockery) towards bess/ben. The very first thing you'll hear if you try to write a deep, complex character is "Lmao he wants to make another bess/ben!"
From incoming writers they want either simple characters (Preferably stationary bitches who can just spread holes and do nothing else), or Expansions for
their characters (which usually are already crowded as fuck, no seriously - there was not even a day without someone posting some stuff for anno/syri/another backstage catgirl.) Period.
Second thing - they
FEAR mods. No bullshit, they really shiver and piss their pants each time they hear something about modding, even bare mentioning a
possibility of modding will already get you scolded hard.
They know that if they won't have a FULL control over the Game - there will eventually appear someone who's better than them and who they can't control.
Those "Someone Requested their OC being removed, so we don't want this to happen again and now literally X-raying everyone before allowing even a speck of unique stuff in" bullshit is just a sorry-ass excuse to put a leash onto you if you ever dare to jump into this.
This is also the main, hidden reason why they jumped into the "Engine Switching" - to justify the Code obfuscation. Hell, even they sometimes confuse themselves which shit should go where.
Third thing - No support. At all. You want to write something with your character, but doesn't know something you need to know? Don't even bother asking. They either send you off to read wiki, story bible or fuck yourself (the last one is ten times often as they understand the crappy state of the first two options themselves). OH, and also their "Splendid quality control" they're boasting with(which, kek, we already see in the form of Sophora being put in and then hastily removed.)
And just cherry on top - they're really enjoying not giving people what they want, focusing on everything else. And I don’t even have to point on a certain sharky mascot they're used to promoting their game a long time ago, reminding that all you got after all these years for her is just some sweaty BJ-expansion.