Rotax vs O-200C, its the money . . .
The original Skycatcher did have the Rotax. Problem is the Rotax is made in Germany and priced in Euros. When the Euro was 80 cents, this engine cost $10,000 or so. Now the Euro is $1.60 or so, and the SAME Rotax engine now costs twice as much, same for parts, etc.
With the O-200, Cessna doesn't have the exposure to exchange rates which can drastically affect their cost of parts.
This was a financial decision - an airplane is a collection of compromises flying in formation.
As far as the alleged, unspecified and mysterious "problems with the lightweight O-200", I've not heard nor read of any, so this is a red herring. The O-200 is a good, solid, reliable and well understood aircraft engine, and if you don't like them, prepare to be unhappy, because they are going to be around for many years to come.
Best Regards,
Echo Mike