Why is the last official Etoys version not sufficient anymore?
Maybe because it has not worked on Macs for 5 years now, because nobody has had the time to build and maintain a 64 bit VM that can run the old image format. I also saw a few weeks ago that it has been removed from Debian for lack of maintenance.
At this point I'm neither for nor against removing it from current Squeak because I see both the value of keeping it and the cost associated with that. In a way it would only be worth keeping if someone stepped up to really fix it and make old projects work again (like Tim did a few years ago), and I don't see that happening. I certainly don't have the time.