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Personally, I blame B&N. I doubt their vision was ever much in step with Fictionwise; they probably just wanted to grab the existing tech and customer base and run with them.
Ironically, I've spent the most of my e-book buying dollars on purchases at Fictionwise, despite the rapid downwards spiral, because deep discount coupons (thanks for posting so many in the Deals forum, by the way) combined with MultiFormat (which is still pretty strong for sf/fantasy works) still makes them mostly worth it for me.
Although I wish I could have gotten more stuff and supported them back when they were apparently a much better business.
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