I heard that it was due to the lack of plugins, and that was in turn due to a tricky and complicated API. Live Picture used some interesting and complicated data structures to work its magic, but all of that complication was exposed to and required of plugin authors.
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The article praises Live Picture, but offer no hints as to why it failed to "kill" or even simply concurrence Photoshop.
I heard that it was due to the lack of plugins, and that was in turn due to a tricky and complicated API. Live Picture used some interesting and complicated data structures to work its magic, but all of that complication was exposed to and required of plugin authors.