Just watched this on Netflix

It was probably that too, Disney thinking it would be too dark to directly address. According to the Blu-Ray/DVD extras, they decided to go with the final cut with Phil Collin's No Way Out (Soundtrack Version) playing in the background, as they thought it best represented the tone of the situation. This was explained before they showed the early version of that scene, which was roughly animated with the full dialogue presented.

As I watched and listened to it (it might even be on YouTube) I kept shaking my head thinking they should have went with the early version. Everything was done written and recorded for that scene, it was a matter of fully animating it. There was even unheard emotional instrumental score playing in the background. I love everyone song from that film but No Way Out has to be one of the weakest ones (lyrically the Pop version is better but in my opinion it has no place in the movie).

"but I do think that forgiveness from Koda came too fast and easy."

Agreed. This is another issue I've had with the story. Though Koda doesn't forgive Kenai right away, it's still came too fast.

"It should have had a bittersweet ending. Koda should have forgiven Kenai, but stayed with the other bears. Kenai should have become human again to live amongst his people with a newfound respect for nature and animals.

More Fox and the Hound, less 'happily ever after'.

I agree also that Koda, forgiving though he might be, should not have stayed friends with Kenai. That's unbelievable."

Though I definitively agree with your theory, the choice of Kenai returning to be a bear again was a part of his arc. It was a part of his realization and growth, so regardless of me personally cringing of the idea, it was still a choice that was dramatically satisfying for his arc.