If you should know anything about networks, it's that they are absolutely terrified of anything that is not 100% safe. Even when something works once or twice, that is not enough.
Fuck, look how Nick is milking Spongebob dry and didn't have any lasting show until the Loud House turned out to be a hit as they were too scared to let anything grow and wouldn't let any show take chances because the ratings were not high enough from the beginning.
Yes reruns of shows with continuity absolutly can work. But they CAN work. They don't just work, they CAN work. On the other hand, having Spongebob on air as much as possible just works. It's safe, you know it will work, you're not taking any chances.
That said I do hope that CN's shitty shenanigans starting to backfire on them will teach everyone in that line of work a lesson : audiences can get tired of repetition.