Honestly, I think one of the biggest reasons is that it just became easier and cheaper in the linux world to throw a stack of raspberry pis at the problem. Windows, multi-seat became advantageous because the cheapest Windows box was at least a couple hundred dollars. Linux, however, why bother messing with a stack of $100 multi-seat adapters when a pi, memory stick, and power supply is $50? Had the pi and similar super cheap boxes not come out, I imagine you'd have seen more work polishing up the multi-seat experience to be extremely seamless, but a lot of that work just wasn't needed.
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Honestly, I think one of the biggest reasons is that it just became easier and cheaper in the linux world to throw a stack of raspberry pis at the problem. Windows, multi-seat became advantageous because the cheapest Windows box was at least a couple hundred dollars. Linux, however, why bother messing with a stack of $100 multi-seat adapters when a pi, memory stick, and power supply is $50? Had the pi and similar super cheap boxes not come out, I imagine you'd have seen more work polishing up the multi-seat experience to be extremely seamless, but a lot of that work just wasn't needed.