I think it was a "timing" problem more than anything else. Not long after Slice launched (late) RPi2 came along, and the lack of CM2 card meant the specs looked weak, and then RPi3 arrived to drive nails further into the coffin. CM3 eventually caught up, but that was some time later again and by that point the day-jobs of the "Five" had also multiplied via Pi success and the company they'd formed hadn't sold enough product volume to really be viable. These days the Pi Foundation owns the IP/designs, but while I think having them create/release an "official" HTPC box would be good for their own sales it would also put them into competition with their ecosystem in a negative way.. but I should ask Gordon anyway
That all makes sense - the CM1 vs Pi 2 was very unfortunate timing - and the CM1 was just a little bit underpowered (though with the MPEG2 and VC-1 licences it was still a very capable HD and SD media player).
ISTR there was an issue with the continued use of the original Slice skin in Kodi - but hadn't realised that the Pi Foundation now owned the IP and designs. I totally understand why the Pi foundation wouldn't want to compete with others in the ecosystem. However they do make the DVB-T2 HAT - and that integrated into a modern Pi 4-based Slice (once the HDR and HD Audio stuff is implemented) would be lovely.