They failed because no one could trust them. I never bought into it at all because I knew one day they'd shut it down, and they did.
Google ruined their reputation, and people are going to have a tough time buying into anything they release. I really only buy their phones and use their services that I am not tied into, such as YouTube, Maps, Translate, etc. All of their services where I am buying things, or hosting my data, I jumped shipped a couple years ago.
I mean shit, I bought their Google WiFi and they just straight up fucked all their users and released their Nest WiFi, pretending the Google WiFi doesn't exist.
Pretty much everyone I know refuses to buy into anything Google releases now. Not because they are tired of losing money or support, but they hate having to try and move their stuff over to a different service.
The average user won't care about firmware updates or that they lost a few bucks, but they hate when they need to figure out how to move their music over to Spotify or lose the ability to cloud print.