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eh, to be honest a lot of things go on when these movies are being conceived. I have the Godzilla art book and looking at some of the designs for Godzilla they looked REALLY bad like some weird Allosaurus fish thingies. And for General Grievous some dude legit turned in a baby sitting in a hover chair as a design. But I think the logic is no matter how bad your idea is you still wanna turn it in because you never know if someone might find something in it and give them ideas going forward. Like they actually ended up giving Godzilla gills and some of the rejected Grievous designs ended up becoming the magna-guards.
So I guess with this they still went with the hybrid idea even though they realized having human hybrids was going to scare the shit out of people. No idea how this actually made it to the scripting phase though, lmao