Jokes aside, that's one impressive fan interpretation (the one on the right, obviously). It's character re-imagining done right; she still retains iconic facets of her original incarnation while bringing in new visual elements that still manages to be faithful to the character.

At least, that's how it seems to me. Bear in mind I haven't played a Battletoads game since the 90's.

I can understand why they might be hesitant to use her original design. This version definitely gives much more of the same vibe of the original while, imo, improving on it and avoiding what might make it an issue.