The 1.3 thing being a prevalent thing in this thread is like the paint in the last spoiler.
What can you say, people refuse to read.
Because Terraria is rapidly reaching fundamental limitations in its code that are limiting the creativity of the development team, both in terms of graphics, potential complexity, and quantity of content. It was never designed to be as big as it was, and its too late to rewrite it.
Would focusing all efforts to create one polished game not be a better idea??
No. The dev team focusing on T1 has things well under control.
Now efforts will be split between Terraia, Terraria OW, and Terraria 2. ?
Nope; T1's keeping its current development team, at least as it was going to anyway. A new dev team is working TOW, and T2 is not under development. Its not splitting anything at all.
Speaking of which, why is any sort of sequel/spinoff necessary? Rewrite some engine if it poses limitations, change the art-style to the nasty Starbound-looking theme if you must, but why does that warrant a new game?
You aren't serious are you? You don't rewrite a 4 year old game from scratch so that you can expand its limitations, or redo all the art assets of a 4-year old game, for a massive graphical overhaul. That is the definition of clinging to the past. It would probably be HARDER to do this than just starting fresh. Furthermore, the results are even less satisfactory; you break EVERYTHING in the process, so you end up making a whole new game anyway . . . might as well just do that and not ruin T1.
Why not? They can do whatever they want to the game, but why make it a whole new game? What's wrong with a large update?
I think you underestimate the sheer quantity and scope of the changes going into this . . . you can't just "update Terraria". Its harder to tear through years of code to completely rewrite it while holding onto some stability, than it is to just make a new game. And the end results are two good games, rather than one unstable hodgepodge mess.
As for "profit motivated", anyone who accuses a team that has provided years worth of free updates to their only game of being profit motivated needs to branch out into the video game world and see what true profit motivated companies do. What a ludicrous assumption.