No, it died because the Discworld rights are sold as a bundle rather then as individual books and Disney wasn't willing to commit to getting the whole shebang.
Because Disney's the one American animation studio still willing to do theatrical hand-drawn stuff. Every other animated movie studio is pretty firmly rooted in CGI and it's unlikely any other studios would fund anything other then the CG medium. It's why Bone
is being done as CGI/Mo-Cap instead of 2D like Jeff Smith wanted.
edited 25th Apr '12 8:16:49 PM by FigmentJedi