This strikes me as a too simplistic view of neoteny.
You could have a look at Anime or Pixar or cartoon characters and ask the same questions. They also objectively don't look like kids if you make a photo comparison side-by-side (at least in certain styles). Their features are so exaggerated they strictly speaking don't even look human.
Nevertheless, they can cause strong reactions and emotions in viewers in a similar way OP here described for cats.
My guess is that both (cats and anime) hacked our visual network in a sense: They took some visual features that evoke "cuteness" in humans and which likely evolved for the purpose of driving us to protect our kids - and dialled them up to 11 and combined them with not child-like features to evoke a response that's even more intense than the one we have for kids.
So in a sense, they look more like kids than actual kids do.