In my opinion the one thing that makes it hard for sandstorm to grow is the requirement that apps have to specifically be modified to work on the platform, and it never reached critical mass of developers building in sandstorm support to their apps. So it's essentially a chicken-and-egg problem. I'm not sure what the solution to that is.
I would love to read a pseudo-postmortem (I refuse to believe this heralds the death of sandstorm) by @kentonv about what he thinks the main challenges of getting to a truly decentralized world are, how sandstorm plays in, and where we go from here.