I'd argue it's less a lack of talent, but rather there are incentives to produce something quickly and cheaply.
In the 80s and 90s there was a lot of american cartoons being broadcast in Canada, so there was stiff competition to get something to air if it was made at home. It had to compete with the entire US market. In the early 2000s there were some rules changed about what can and cannot be on a 'childrens cartoons channel lineup', and Canadian tv channels specializing in cartons had to have a minimum of Canadian made content. So channels went out and purchased/funded the cheapest, most quickly produced Canadian cartoons they could get their hands on, thus the rise of Canadian flash cartoons becoming a meme.
