As an ex-VAR engineer who focused on Sun I can tell you we called Oracle the sales prevention dept. They changed the T's&C's to the point you were basically saying that if there is something wrong with an order it was your fault. State/Local gov had a very hard time with this. Also, as someone else mentioned they removed all support levels except for 24/7 Premium. If you decided not to buy support but wanted to get it a year or two later, say you decide to move a server from dev to prod, you have to back pay for support from the day the server was purchased!
They also cut the product line substantially and did raise prices some but nothing outrageous, it was mainly the support that got you. I wouldn't say that most of our customers ran screaming from Sun hardware, we still sold a lot of it, but people are rethinking something they were quite comfortable not thinking about.