When playing Episode 2, I did think it was a bit weird that Morgan put down insult sword fighting just like that. It just cried out to me as the developers saying, "no, we are not doing Insult Sword Fighting, stop asking."
But now, having played Episode 3, and gone through a couple of puzzles inspired by Insult Sword Fighting, I think I understand what they were thinking.
I think the fun of Insult Sword Fighting in the original actually came from figuring out what you were supposed to do, rather than actually doing it. And worse, when it was repeated again in MI3 and then in MI4, we already knew how to play it, and didn't enjoy it as much the second and third times.
Bravo to Telltale to realising that they needed to come up with a new version of the mechanic to keep things interesting.
Alright, alright, I know there was the Monkey Combat in MI4. But I'd take the face-pulling mini-game over Monkey Combat any day XD