Now, the thing is that to fit more content, well... you can't.
Terraria is literally bursting at the seams. Stupid .NET framework can't handle any more.
You are probably wondering why USE .NET, well it's because Terraria started off as Redigit's hobby. He had no idea it was gonna got this huge.
Don't say overhaul it, that is more work than making a new game.
T2 will use a different framework. It will also have better (beautiful) graphics and more content.
Also, there's the question of what T1 veterans may or may not like.
If you added infinite worlds to T1, some people may not like it as it could interfere in a huge way with the game.
Some may not like if they overhauled graphics.
In a new game, it's fine, they can do what they want.
Technically Speaking though, Minecraft is recieving regular updates, even though the game is 2 years older than Terraria, Minecraft is still being updated, and they at a point added infinite worlds, but never made a new game (ignore Minecraft Dungeons)
Minecraft doesn't use the same engine at all. Comparing them is fruitless.
so I don't entirely see the point in making a new game, when you would just follow Minecraft, and not be money greedy, and with the big, big update thing, they could release the updates gradually, or they could have an option in world creation.
MONEY GREEDY? Are you saying Re-Logic is money greedy while Mojang is not?
I think you have mixed it up.
Minecraft added a store in Bedrock, where you buy overpriced maps, skins and textures at like £3 each. You also need to pay £20 to actually get the initial game (unless it's mobile, but then it lags so much it's not worth playing).
I loved Minecraft, but the store kinda ruined it a little.
Terraria offers the computer version for £7! £7!!!! Are you saying that a company that releases a game that offers thousands of hours of quality playing for SEVEN POUNDS is money greedy?
Also Minecraft feels kind of behind Terraria in terms of content. Line them up next to each other and Minecraft looks pretty empty.