The CEO of PocketPair, the developer of Palworld, has commented that the company wishes to remain small and stay away from AAA titles.

It would make good business sense to drop Craftopia, but kind of a shitty move imo. Many people bought it with the hope that the devs would finish it.
I tend to avoid early access titles for mainly this reason, and am specifically waiting on Palworld to hit 1.0 because of how Craftopia development was handled.

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They could just abandon it and give everyone who bought it palworld, seems to me craftopia is going to become a minimally viable product before being released out of EA and ignored.

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