It’s mostly a stylistic choice, the minimalist graphics leave a lot of it up to interpretation, if you just slapped assets from Crysis remastered or something in the game, it would lose some of its charm because the specificity of the design direction of the assets combined with the procedural generation would make the game repetitive, but the 16×16 voxel log block works just as well in a giant elven tree, or a desolate burned down forest, or a pile of lumber tied up in minecart rails.
Notch originally recycled the assets from various other projects, which used basic programmer art, particularly textures that were meant to be viewed from afar in an isometric project called Rubydung which was inspired by Dwarf Fortress. You can find footage of when he tried putting in more elaborate character models while still using the Rubydung textures.
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