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Firstly, my opinion is that Nival has been using a similar "cartoonish" engine since 2001, in Allods 3 and later in Demigods, Silent Storm. It doesn't resemble Heroes 2 in any way.
Secondly, I doubt their survival was at stake. More likely, they were just trying to make as much money as possible.
Thirdly, here are some examples.
I enjoy playing Warcraft, but I'm tired of real-time games. I want something more relaxed. I like orcs; they are fierce, with demonic blood, and they are part of the Horde. Are there any other games like that?
Heroes 5.
I like playing Lineage 2, but I want to engage my mind with a strategy game. What's the newest one out there, and does it have elves like in Lineage 2?
Heroes 5.
I like drow as in D&D, but for some reason, no one makes strategy games about them... Or do they?
Heroes 5.
I'm a fan of Warhammer; I want to see how a bald inquisitor punishes demons with a hammer in the name of the Lord.
Check out Heroes 5.
"Pop culture pandering" is the loss of one's own style and the desire to please everyone.
Considering that Warcraft is now an icon of the gaming world, I think it's in poor taste to make a game that looks like it. Especially when the game has no reason to do so.