It partially failed due to the dot com collapse sucking all the oxygen out of the room.
It also failed because the technology wasn't good enough, and the resulting 3D was, frankly, pretty shitty.
But as impressive as creating this from a single image may be, the people viewing it won't care - the output is uselessly bad.
In the interim, I worked with true volume rendering of CT, MR, PET data for a decade.