1) It's strongly connected to Canonical and Ubuntu. This is mostly a matter of perception and it is an actual community project. However, I can understand people not feeling comfortable with "snap install lxd".
2) It sits somewhere in between k8s and docker engine. Over time, it will probably get more k8s-like features but still it is a weird position to be in.
3) It lacks a reach ecosystem of tools supporting it and a web UI. This makes it hard for newcomers to adopt. We're working on a web UI ourselves as part of our open source cloud management platform (https://github.com/mistio/mist-ce) and love to hear your thoughts.