Well, we can start with the reasons why.I honestly don't understand this decision. If you are to bring fantasy races to the modern world, what stop you from mixing technology and magic? You had a story you wanted to tell. You might have some new ideas now and want to change your story, but what if you have some other new ideas later on? I'm not saying you cant change the story but you need to know that you will be tempted to change your story (again and again) in the future.
You could be very sure now you won't change the story again, but what is the reason for you to change the story this time? What if the same reason pop up again?
First of all, we didn't like the plot. Too many unnecessary branches in the plot, some inconsistent action, overpowered characters, etc.
Secondly, we read more than once that the plot was "weird" and we couldn't disagree.
So in general we kept what we liked and simplified it. We added friends, family to the characters, generally added details of normal life. But we kept the fantasy characters for variety. Before they were creatures with superpowers, now they're just creatures with specific characteristics.
We still like our previous idea, but the implementation failed.
Why are we sure we won't keep changing the plot?
At the moment we like the plot. Not just the idea, but the plot. Yes, there will be improvements to the dialogue in the future, but the plot will remain untouched.
In addition, this update has received more positive feedback, which motivates us to continue working on the game.