I think Purcell was involved with Freelance Police at least as much as he is with the Telltale episodes. I too was rather, erm, surprised by the cat in the E3 trailer at the time, but I have to wonder if he was even going to appear in the actual game. Stemmle and Purcell were involved, so I really can't see the game having turned out to be clueless as to what the license was really about.
Based on the latest stuff we heard/saw of the game (such as those post-cancellation screenshots that looked a lot better than that trailer) all of the NPCs in the game were human, from Flint to that Sybil-looking dame to the basoonist to the weird lanky glasses guy with the black hair. (To be fair though, animal nemesis are not uncommon in Sam & Max stories, they're just not super prevalent. Mack Salmon?)
Anywho, I'm definitely among the people who say that Freelance Police should be let go considering that it's long dead and buried, but it was by all accounts shaping up to be a good game. At least, Purcell said so, and that's good enough for me. But yes, let's move the hell on, especially considering how good the Telltale games are. (And Telltale has employed most of the people who worked on Freelance Police anyway. For God's sake, Stemmle is even there now.) LucasArts isn't capable of making good adventure games anymore, Purcell wouldn't sign the rights over to them in the event that they would ever want to make a Sam & Max game (which they don't), and Telltale can't legally use any of the content from the game (eternally LEC property) anyway, so why dwell on it? Besides, if there were any story ideas from Freelance Police that were really great, Telltale could probably recycle them provided they change things up a bit, or you know, just make up new stuff like they've been doing. It's worked out fine so far.