It seemed that me around the height of MySphere buzz the sr1a was coming out and stole the limelight and many assumed the new ribbon" was technically better and a upgrade to this style of ear speaker.
Personally, I think it did play the role, but based on my experience and the experience of 6 other people I have lent the Mysphere to, there are several other reasons why the Mysphere didn't become as popular as it might have been. Now, when the production is over (and presumably the sales), I think it won't hurt the team behind the project if I write my opinion here (I didn't want to write it before since I deeply respect Heinz):
1. The headband.
All 6 people I have given the Mysphere to complained about it. It was simply not comfortable enough for them - either the headphones didn't sit firm enough on the head, or there were painful spots (usually below the tips). For me personally when the soundframes are fully closed, the comfort is decent, but no more than that (for example the AKG K812 is way more comfortable), and when I open them for some reason the Mysphere gets less stable on my head and the comfort is worse. For me in terms of comfort the Mysphere with fully-closed soundframes is about the same as the K1000 (both not very comfortable) and with with open soundframes it is worse.
As far as I remember the headband was designed by scanning and averaging heads of many people so that it would be comfortable to most of them. But maybe people where I live have a little bit different head shapes, for example there can be some variations based on the ethnicity, but some in this thread also complained.
2. The soundstage.
Many people who were waiting for the AKG K1000 successor thought the Mysphere was also going to have that "speaker-like" big sound with massive soundstage and natural crossfeed. But the Mysphere doesn't have it. Actually, with the soundframes full-closed the soundstage is quite small and the sound is much more "inside your head" than some conventional headphones, such as the Sennheiser HD800. That was the main complaint in terms of sound from other the K1000 owners who were considering the upgrade to the Mysphere.
3. The soundframes touching the ears as the main mode of listening of the Mysphere.
I've noticed that many people don't like when earpads touch their ears. Somehow it is annoying to them. Over the years I've seen many threads on different forums where people were asking for advice about headphones with earpads with large openings. But it is the main mode for the Mysphere - the headphones were designed to be listened that way. It is not as bad as for some over-ear headphones, since there is no pressure, but still.
Actually, I've noticed that when you give the Mysphere to any person, they always try to listen to them with the soundframes open to some extent, usually a lot. And since it is not the optimal mode, they don't hear the Mysphere to their fullest potential and also the bass is quite weak (see below).
4. The bass.
The Mysphere was released with only normal frames and with those the bass is perceived relatively weak. Actually, when you listen to the Mysphere with soundframes away from the ears, there seems to be even less bass than in the K1000.
The bass frames were a big improvement, and with them the Mysphere has excellent bass when the soundframes fully closed, but they don't help when you open them (and see above people trying to wear the Mysphere that way). Also, the bass frames were released much later on, when all the buzz around the headphones was over, no more CanJams where people can hear them with new frames and so on.
5. You cannot listen the Mysphere loudly.
Some people really like to listen to headphones very loudly, but the Mysphere starts to reach the limit of the driver's excursion quite early and when it does there are audible distortions, and many people reported them. When you listen to music with a large amount of deep bass at a concert-like volume, you can hear it rattle (the driver probably touches its limits).
6. Tonal balance of the Mysphere is not for everybody.
I've noticed that some people, especially, it seems, from Asia, like bright headphones, when highs have some "sparkle" . That guy Crinacle (who is Asian) described it this way:
Probably the most offensive thing about the 3.2 is the vocals; very shouty and uncharacteristically in-your-face despite the earspeaker configuration. Interestingly enough the 3.2 is shouty whilst also being somewhat dark in its treble presentation (one may even consider it “smooth”), making for a double-whammy of contrasting tonalities.
While I don't agree with him fully, his description of treble is somewhat correct. For some it can be a good thing, like for myself, since there is no fatigue from piercing treble, but some don't like such presentation.
Don't get me wrong, I do like the Mysphere and it has many redeeming qualities that I have not mentioned since there are not related to the topic.
I find them comfortable. Very wide sounding, and very outside my head and holographic 
