Among other things, they WAAAAAAY underestimated the amount of effort required to filter the OARs so that only assets made by creators who opted-in would be restored. And the results were fields of plywood cubes, since textures on objects and sculpt textures have no creator info.
It would have worked out better if they had just deleted all the assets and started from scratch.
From what I saw of Inworldz it was mostly populated by former SL residents who felt they had been pushed too far by the Lindens over this or that issue. And it's hard to build a profitable/sustainable business when your primary audience is another company's bitter ex-clients who want something that's essentially the same product but cheaper and less arbitrary in its choices. This seems true of OpenSim in general, but Inworldz was looking to make a decent amount of money and I'm not convinced that was ever going to happen.