If I were staying in your argument, then Lisp was the language of symbolic AI. The language where things like symbolic mathematics (Macsyma, Reduce, ...), planners, theorem provers, natural language understanding, reasoning systems, expert systems, knowledge-based systems (Cyc, ...) were explored and first tried to commercialize (mid 80s). Symbolic AI funding went away with the cold war ending...
Lisp was actually invented and designed for this. John McCarthy was designing Lisp as a vehicle for (his) AI research.
There might still be a lot of Lisp users. Even among AI researchers (and related domains) there are many using Lisp tools which you probably have never heard of - like ACL2 (a theorem prover), PVS (a theorem prover used at NASA), ACT-R (a cognitive architecture with more publications written about then you can ever read). The usage of Lisp may even be constant in these domains. There was an explosion of programming in general. Outside these domains Lisp never really participated in this explosion (with a few exceptions like Lisp in Autocad, Lisp in Emacs, ...).
But should it? Lisp's almost unbounded flexibility is obviously not needed by the average programmer. It is actually a something which makes a bad programmer worse.
'Lisp Machines' were just one development/deployment platform - 10000 sold in a decade. Lisp was used before Lisp Machines and after Lisp Machines.
> It never became the scripting language of something else that was exploding in popularity.
Autocad sold millions of copies and is still widely used today. Several Autocad 'clones' support the use of Lisp for CAD scripting.