Why does a company discontinue a product? In some cases because a new design exclipses the old design, or it just didn't sell well in the first place. I can't answer this for sure in the case of the Cary CAD-500MB, but it could very well be because it didn't sell well. So, if that was the case, why would they build on it with a 600MB, 1000MB, etc? With that said, when I sold Cary products, I really liked the CAD-500MB. They were very good monoblocks.
Perhaps the two-channel audiophile wasn't convinced that a primarily tube manufacturer could make a good solid-state amp (which would have been a mistake), and perhaps the home theatre buyers didn't want stacks of monoblocks to run their setup. Just guesses.