Okay, here's the basic theory (and there are two parts).
1 - As to losing money by producing the game: Yes, the game is developed and that is already lost money if not recouped. But to put the games on SMCs (buying the SMCs) and package them costs money. Lets say it costs $10 to do this (no idea, its an example) and you produce 5,000 units... that's $50,000 invested on top of the development cost. Now, to break even on the SMC and packaging alone, you would have to sell 2,500 units at $20... and still haven't repaid _any_ development cost. Now, what if they only sell 2,000 units? Suddenly, they not only lost the development cost, but $5,000 of SMC/Packaging cost. Yes, prices vary, etc... I'm not in the business and I know you CAN make money at this (its all part of determining a products price), but this is probably their reasoning.
But, lets assume they go ahead and produce the game, and happen to make a bit of money, or at least start paying back the GP32 versions development cost. So, on to #2:
2 - I'm not sure if there is any version other than GBA, but all of the above goes into their thinking/pricing for those versions, on which they hope to make money (obviously). Now, I've heard quite a bit of excitement amongst you about this game, and I know that there are quite a few (no flames, I know not everyone, but still some) people who own GBA and GP32. We all know GP32 is a better machine, bigger screen etc., so of course if there are two versions you will buy the GP32 version. But what if there is only one version... GBA? I realize that cuts out anyone here who doesn't own both, and not everyone who owns both and would buy a GP32 version will go out and get the GBA one anyway, but the GP32 version (which may lose money) still cuts into the sales of the GBA version (where they are almost certain to break even, after which point each game sold starts making them more and more money.... what every company is after).
Hope that made sense, if not... don't worry about it. Basically, we don't control the company, but if you do really want Radium for your GP32 (and are willing to buy it, not just try and figure out a way of piracy), then try contacting the company, post on their boards or elsewhere... show that there is a lot of support and lots of people willing to buy the game!
On a last note, the international MegaGP coming soon will hopefully help with both this and also some independent developers... minus packaging/SMC costs means not only cheaper games for you, but less risk for the company/developer! In this case, with no additional costs, it would be ridiculous for them to NOT release Radium, if only on a downloadable version... any profits from that help defray the cost of the already complete development.
but if you don't have a SNES, buying a gp32 makes more sense, you have to get the games anyway, so why not a for a machine that can run other formats too. 
