I think it may be true that Chester was just too much like Wally-- nice-looking, clean-cut, more serious about academics and sports than Eddie. Tooey was more idiosyncratic, and maybe he was the eccentric one who got bumped, while Eddie and Lumpy were the 2 they decided to go with (subtracting a couple of years from Lumpy from when he is first introduced).
But it could well have been just that the 2 young actors were not interested in continuing their semi-regular roles; performers usually have a plurality of endeavors they are working on... music, theater, dancing, writing... LITB may have only been a very minor and expendable thing within their 'projects.' For that matter, they may have tasted acting and show business and decided that is not their goal anyway.
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