Bluetooth didn’t really hit mainstream until the arrival of chipsets that multiplexed Bluetooth and WiFi on the same radio+antenna. My memory is that happened sometime around 2007-2010.
At that point, the BOM cost to add Bluetooth to a laptop or smart device became essentially zero, why not include it? Modern smartphones with both Bluetooth and Wifi arrived at around the same time (I suspect these combo chipsets were originally developed for handheld devices, and laptops benefited)
And once Bluetooth was mainstream, we saw a steady rise in devices using Bluetooth.
WUSB operates on a completely different set of frequencies and technology and couldn’t share hardware with WiFi. Maybe it could have taken off if there was a killer app, but there never was.