Sorry, I didn't mean you in particular, I meant 'you' as in the general population who felt like the phone failed. Google announced that they were very happy with the hardware progress made after the N1 was released, and they feel that they do not need to push it any more. I can't find the article right now as I am in class, but if you do a quick google search it shouldn't be hard to find.
http://www.usanewsweek.com/news/Google-Silent-Farewell-to-the-Nexus-One-1279378432/
Stating that the Nexus One experiment was an unabashed success, CEO Eric Schmidt said the company didnt have to do a second model. "We would view that as positive but people criticized us heavily for that. I called up the board and said: Ok, it worked. Congratulations we're stopping. We like that flexibility, we think that flexibility is characteristic of nimbleness at our scale."
Commenting on the work done by the Nexus One smartphones, PiperJaffray, an investment company, said in a note, We believe the Nexus One effectively served the purpose of showing phone manufacturers that they can build real iPhone competitors.
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Folks need to understand that Google is not a hardware manufacturer. They have different goals in mind compared to Apple. Even if the Nexus One happened to be a huge success in sales, wouldn't that have cannibalized the sales of other Androids and irked many of Google's partners?
The Nexus One was a point of reference. It was the first Android phone released in the U.S. that had a Snapdragon processor. The first superphone released in 2010. The first phone officially sold from Google. The first to usher in more (and better) Android phones. It didn't sell well because it cost too much and most consumers want to try it out first-hand and feel the phone. But it did its job to inspire future Android phones out there.