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human
[Star Wars] Why did the AT-AT replace the AT-TE ?

I cannot for the life of me understand how the AT-AT is used as an upgrade from what seemed like such a powerful, and stable design. Not only does the AT-TE seems to have much more variety of firepower backed up with raw power of it's main gun(relative to the time), but the leg placement seems much more stable, and able to resist heavy fire due to the overall shape, and plating. The AT-TE also can maintain the same top speed as the AT-AT (60 km/h) even with more legs, and smaller stride. In terms of transport the AT-AT wins with about 40 troops depending on loadout, but the AT-TE still can handle 30 clone troopers.Furthermore the troopers are more protected during exit by the large array of smaller guns unlike the AT-AT which merely has very limited head-mounted lasers. Based on what I've seen of the designs they also have quicker, and easier access to dismount allowing them to cover the transport from approaching smaller arms. 

Now obviously in 1 vs 1 combat an AT-AT would still be superior, but technological progress makes that kind of battle unfair. Rather my question is about why so many seemingly strong design elements of the AT-TE were scrapped. Especially the very stable design, and gun coverage both of which seem to have been totally forgotten in favor of a tall, cumbersome behemoth that while overwhelming in power has enough glaring problems that even a snowspeeder squadron, or lone jedi apprentice could take them out.

Edit: Thanks for all the answers, and great discussion. This sub is fantastic people.
gpt
It's a matter of intimidation.

The AT-AT has much taller legs which have more armor plating than the legs of the AT-TE.

Sure, it only has 4, like you said, but the AT-AT is a lot more intimidating because infantry on the ground is barely able to hit anything but the reinforced bottom, while the AT-TE can be attacked on all sides.

The AT-TE was a product of the republic, useful, practical, efficient.

But the Empire also wants to strike fear in it's opponents.

As for gun coverage, the Empire and the Republic were very different: the AT-TE was created in a time of civil war with the separatists and needed that fire power.

the AT-AT was created by the Empire during relative peace and was created mainly to impose that peace.

The rebellion, the main visible threat of the Empire was not as powerful as the separatists and as such, less fire power was needed to squash them.