The obscene price was the biggest killer of its sales more than anything. At a time when wolverine was putting up daniel defense guns for 1200 it was bad to try and sell the canadian colts for 2200 and 2400. And the sudden price drop to 1800 and 2000 respectively had 2 possibly 3 problems. 1 it wasn't a sufficient drop in price, 2 it was a slap in the face of every early adopter that paid the big initial asking price. 3 and this is probably there could be some people holding off expecting a second price drop.
The knights uses a different propietary bolt if I am not mistaken, Whereas the CC uses a milspec bolt.
Do I think they are good guns? After playing with mine, other than being features bare, it is a good quality gun.
The Knights guns come with an improved bolt, full ambi lower, match triggers, sopmod stock, QD sling mounts and mounts, free float rails, hard gun case, at only a slightly higher price. IMO they are a much better value considering these are from the U.S. and they have to be imported unlike the CC made in Kitchener Ontario.
Also you fail to mention the LE/mil pricing fiasco