> it was just a SQL database that stored arbitrary data.
I mean, for some definitions of “just”, “SQL database”, and “arbitrary data.” :) It was a schematised graph database implemented on top of a slimmed-down version of SQL Server. The query language was not SQL-based.
> It was abandoned due to The Cloud.
It was discontinued circa 2007. The cloud was much less of a Thing back then. I don’t recall that factoring at all into the decision to cancel the project, though it would have been prescient.
(Disclaimer: I was on the WinFS team at Microsoft.)