This was not the only reason Lady Hatts Tea Cups is not here today. This was one of the main factors, but we have to remember that before the previous owners would've even had chance to start installing a new ride, the park went into administration and was bought by The Looping Group.
I believe Looping didn't like the plans for a new teacups ride in Thomas Land and that's the reason why we don't have it today, and instead we have Thomas and Percy's Submarine Splash (which in my opinion is a much better ride than Lady Hatts would've been).