A few things worked against its adoption.
First, it was too proprietary. A modern initiative based on open standards would have a much better chance of gaining a foothold in niche communities, much like Bitcoin.
Second, it was before its time (no pun intended). The web was already popular, but not very real-time. There was some chat, but it was pretty geeky, not like Skype or Facebook IM now. And hardly any videoconferencing or live-streaming. And not as much distance working as happens now. So there wasn't that much demand for syncing time.
Third, digital phones were locked down by the manufacturers and carriers (watches too). It would be hard for a grassroots movement to grow if no-one could make apps supporting the new time standard.