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I suspect like most things, the issue is a combination of things. Some of it is that is that various authors/publishers had gotten use to Amazon doing the publicity and placement and were not ready to take up the slack when Amazon no longer felt to need to push indies and small publishers.
The other is that Amazon was using the indies and small publishers as leverage against the big publishers and to establish market share. Now that the big publishers have signed contracts and Amazon has little competition, they no longer feel the need to give away free publicity and as much focus on the indies and small publishers.
Some of it is that there was a flood of low quality ebooks with people trying to cash in and that made it more difficult for the quality indies and small publishers.
I'm sure there are more things as well.
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