I'm sorry but
"didn't stick the landing"?
That's... generous to say the least. I don't support that interpretation.
I'm interested to hear why, in greater detail. The software part seemed pretty damn polished to me - easy UI, extensible via plugins, can't remember it crashing even once in ten years, seamlessly added support for digital cable and OTA sources, guide data was seamless and accurate, extenders worked well, unavoidable DRM was seamless...at a software level, I'm hard pressed to find a place where WMC fell short for its intended scope.
To me, the real issue was that Microsoft didn't have a flagship DVR that looked like a DVR, with an integrated 4-channel tuner and front display. There were custom designs that did this, and Sony made a number of Vaio computers that actually looked like TVs and had integrated tuners, but Microsoft was too dependent on OEMs to make the kind of hardware push that would have assisted consumers in something as simple as having such a device share shelf space with TVs, rather than desktop computers. Had Microsoft sold a computer that looked like a DVR, and was treated like a DVR, complete with a useful setup guide for getting a CableCARD configured the way TiVo does - or, to bring it full circle, made a "DVR conversion accessory" that made an Xbox a DVR - I think they could have competed head-on with cable companies and made a dent.
I predict that Microsoft, without someone to hold back their executive culture, are again going to openly represent consumers in a self-congratulating way that presumes all forms of consumer entertainment are shallowly comparable.
Well...ironically, I do think that most forms of consumer entertainment have been speedrunning toward the lowest common denominator for a while...but I would agree that MS decision makers do seem to live in the sort of self-congratulatory environment where there's the idea that the MS Store just needs time for consumers to prefer it, and that Windows is an active choice, and that people want Windows computers to be iPads or Chromebooks, which means that their half-measures please no one except themselves. However, I don't think that this culture is the same one that came up with WMC back in 2002 or kept it going through 2012ish, and thus I think that WMC failed due to external factors, rather than just banking on people buying a Dell Inspiron for use as a set-top box.