Because it fits in better with the rest of the "cute" food product advertisements.
It was censored for japan because a shcool kid beheaded another quite close to release and it seemd in poor taste. Then the cartoony design was included in AE probably becaus A) like with the 3 fingered Mudokons it made it easier just to have one version for Japan & everyone else and B) Lorne said he didn't really like the original design - but he tries to give his artists some freedom - and felt the new design fit better with the other advertisements.
Cutesy cartoon animals merrily advertising their own slaughter and consumption is the whole twisted point of those posters. If the horrible truth behind the consumer products isn't being hidden behind cheerful colors and happy mascots, then there's none of the irony or satire you'd expect from an Oddworld advert.
It's getting on my nerves how some people are scoffing at New n Tasty's price point, since it's "the same game" as the one on Steam that goes for £2 at the Steam sales, whilst the same people are more than happy to buy the Last of Us remastered which is literally the same game they bought last year.
Something I've been wondering about is the fuzzles. Do we have any information on them (eg social interactions, breeding habits, role in Oddworld's industrial hierarchy, etc) that hasn't been shown to us in MO and SW?
One thing I never really got. Why the macabre, gruesome, obviously unappetizing, original Mudokon Pops logo?
I think that was honestly a plot device more than anything else. It instantly conveyed a sense of shock of seeing the head of the lead character on a stick and instantly shows the danger Abe and his fellow workers are in.