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It's not that it's bad per se. The whole federation thing is confusing enough that it's a barrier to entry. There's also the fact that change is hard. Mastodon has a different interface, with the associated learning curve. Beyond that, it's not just having a certain number of celebrities/etc, but the right ones. That leads to a chicken and egg problem for a lot of users. Eventually enough people would sign up (and content creators posting to both) that it would trigger a mass migration, but that has not happened yet.
So, after all that, most users decide that Twitter is ok enough for now.
Oh, so it's not Mastodon itself that was rejected, just that the network effect isn't big enough yet. That makes a lot of sense.