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From my understanding, that isn't entirely the case. The biggest problem is that no other continuity has the sheer staying power that is UC Gundam's thing, at least until Build Fighters came around. Gundam lives and dies with gunpla/model sales, ever since the original. In addition, Japanese TV...

To be honest, 00 Gundam was one of three continuities up to that point that got more than one season/show... so I wouldn't be surprised that the writers had to dump as much character and plot into the season because it was far more likely that they'll never get the chance to again.

One, appealing is in the eye of the beholder, and two, traditional 2D animation went out outside of a handful of projects for very good reasons. And not because corpos are cheap bastards. People here forget that one tiny mistake will set you back weeks at best. Even with Disney -being the mad...

... it isn't like hand-drawn 2D was any better... ... or have you outright forgotten? Again. I could point out to an '80s/90s anime animation style done in CGI' video but from the sound of it, you'll deride it completely. CGI is a tool, a tool that has been, sadly, misused to simply cut costs.

No, some level of fragmentation is to be expected, it is just that Gundam's fractured fandom is almost as bad as Mutants not Allowed part of the Fallout fandom...

It also doesn't help that the fandom has a disturbing tendency to fracture every time a new continuity shows up and starts flame wars... We still live with the scars of the MSG/Wing flame wars and the MSG/Wing/SEED flame wars to this day in the US...