Atma gave you pure AD for building health, making AD scaling bruisers very deadly (the best example is Jarvan).
In exchange, Titanic Hydra gives you an on-hit effect that increases the damage of your basic attacks and some casual on-hit effect abilities. It is also one of the reasons why actually carry champion with on-hit effects abused bruiser builds (Fiora and Master Yi are the biggest offenders).
While we could argue which enchanting effect is better, bonus AD enchants all your auto-attacks and all the abilities that scale with AD, while bonus on-hit effect damage will enchant auto-attacks and very few abilities (that most of the times already scaled with AD).
So I find Titanic Hydra easier to balance and I think Riot decided Atma's couldn't be balanced or thought that they will rework it into a totally different item.