It had so much going for it, but it was DOA from launch for two reasons: first, the implementation is so bizarre that the kernel documentation is frequently mistaken for an elaborate joke, and second the founder's racist blog went viral at virtually the same time as the public launch. It's not technically failed I guess as it's still being developed and does work, but a network without a network effect can only go so far.
I honestly think the "personal server" idea would be incredibly useful, and it would also be very profitable (not the software itself, but for cloud providers) if every suburban family rented a $15/mo VPS. I post about it here from time to time in the hopes that someone will fork it or re-implement what is basically a great idea, but in a non-ridiculous way and without #cancelled taint of the founder. Bezos, if you're reading this, please put a small team on it just to see if it goes somewhere, I'll be your first customer.