The Public did reject SACD/DVD-Audio, but not for the reasons that you believe. It wasn't an experiment in High Rez. Digital, the manufacturers simply did not have all of their ducks in a row with sound quality prior to releasing SACD/DVD-Audio. They pretty much made the same mistake when CD was first released. Both of these technologies were premature as far as supporting a High Quality Sound Format. The Public was taken to the cleaners, with the supposed improved Sound Quality of CD. The Public giving the benefit of the doubt to the technological prowness of CD, presuming improved Sound Quality would follow. They are still waiting for the 'Perfect Sound Forever', despite decades of development of the CD Format. Some major improvements were made, but the older Format of Analog still sounded better. How much longer is the Public supposed to wait on the development of the CD Format.
SACD/DVD-Audio came along, prematurely again, and this time the Public wasn't going to give the New Format the benefit of the doubt. The Sound of SACD/DVD-Audio was judged as being only slightly better than CD, the Public not wanting to go down the same path of a supposed improved New Format just like when CD was new. The point isn't that the New Formats only sound slightly better than CD, but that the comparison Format of CD still sounds poorly when compared to the best Analog Standards. What does this say about the Sound Quality of SACD/DVD-Audio? It sounds only slightly better than CD, but it still doesn't measure up to Analog, an older Format. There has been three attempts at New Formats, CD/SACD/DVD-Audio, with 30 years of development in Digital Recording, and they still can't get it right! Three Strikes, and the American Public have decided 'your out'! Sounds only slightly better, means that the American Public knows that Manufacturers can do alot better, the Public demanding more! The American Public is unwilling to invest in a New Format, unless there is an improvement in Sound Quality that atleast approaches that of the best Analog. They simply feel cheated by decades of CD, and they are not about to be cheated again by SACD/DVD-Audio, with only a slight improvement in Sound Quality. They want more, not less Sound quality. If less was the goal, then everyone would be chucking their Records and CD's, for SACD/DVD-Audio Disks! That is simply not reality, SACD/DVD-Audio are going out of business, because no one will buy them. Slightly better, is not good enough! Better to go without, than to settle for slightly better!