Alex Winter came to the conclusion that this current generation needed their own live-action cartoon movie, and the Viva Pinata people weren't returning his calls.
Only problem I see with this is CNs trend towards live action features. It seems like they are trying to grab their piece of the niche that Nick and Disney have with pre-teen live action drivel entertainment.
I think the Dexter's Laboratory and Grim & Evil era is fading into the distance.