I'm totally unfair here, because I really don't know much about Dylan, but my view maybe explains a bit why Dylan does not even "win" with people like me, who really like those strange languages like Lisp or ML.
To me, Dylan was never about creating something new and great. It was taking Common Lisp and "fixing" its syntax.
Unfortunately, I can't stand Lisp without prefix notation and lots of parentheses. And people who hate prefix notation and lots of parentheses aren't interested too much in Common Lisp.
The resulting set of people interested in Dylan was... well, I've heard of Bruce. Andreas Bogk was doing some heavy advocacy in Germany, to the point where people just didn't want to listen anymore.
Let's say about ten people in the world cared. And I just don't see how that set could grow by orders of magnitude.