The thing is, the KND stuff was made by a smaller, independent company. Truth be told, Trendmasters (or whatever it was called) had the license to make other CN show merchandise for a while. I distinctly remember seeing prototypes of Cow and Chicken and Johnny Bravo figurine sets. But they never happened, or if they did, I never seen them. I do have some Dexter's Lab merchandise they released, but only because I found it at a Blockbuster video.
Plus the KND stuff was here and gone within a few months... it didn't sell all that well... but I did really like the 1.5" figurine sets they sold... big fan of M.u.s.c.l.e. and Monster in my Pocket type toys as I am. Mattel had a general CN merchandise line featuring the Eds, Fosters, Grim and the like... but I only found them at KB's, and they didn't really seem to carry them for long (even before the store closures). That, and the Eds were one of those shows that didn't catch on at first, but exploded much much later in the series. It was on the air 5 years before it really hit, I think.
But the KND movie would have happened if CN wasn't so chickenhearted about releasing the animated film theatrically. Since that never happened, they completely dropped plans.