The Loki has a hard time selling because people don't like the idea of having to outsource the DSD decoding to another box when there are other solutions that can do it all in one box. It's not an "elegant" solution and for neurotic audiophiles that is an issue.
The audience that is interested in DSD are those who tend to be the most discerning and willing to spend money to satisfy those OCDs, this solution does not check off any of those audiophile OCD checkboxes. Audiophiles argue about cables and additional components to the "chain" that will impact quality, the Loki is a neurotic audiophile's worst nightmare, I'm not surprised it's not selling well. Also, it does not support balanced operation, which also is another of those audiophile OCDs. Are these OCDs substantiated? Probably not Most likely not Almost certainly not, but it comes with the territory.
I guess you could argue that the Loki is targeted towards the entry level DSD audiophile who has not yet developed these OCDs. The reason these people are not purchasing it is because they are looking for something affordable, probably came to the website to buy the Modi (which is a ridiculous deal btw at $99), and then saw that the Loki was an additional $149 and figured they'd just purchase the Modi in the meantime and hold off on buying the Loki until they find that they needed it. Well given that they don't have those audiophile OCDs (and remember, they were looking for something affordable), they never end up purchasing higher-priced DSD tracks and live the rest of their lives consuming redbook or possibly even just a streaming service. The Loki is forgotten.
I haven't heard the Loki myself, and doesn't work for me in terms of connectivity options (yes an audiophile OCD), but I'm sure it sounds great as there are people I trust who say it gets the job done, so I do find it unfortunate that it is having a hard time selling.