A3D killed performance too much in general. It turns out people didn't want to sacrifice performance hits for higher quality audio. In addition it required some tweaking by the user to fully work to its potential. While EAX was clearly inferior, its overall ease to setup and virtually no performance reduction made it a more attractive than A3D (it was also open at the time too).
If it makes you feel any better, EAX 5 effectively now has the same capabilities as A3D.
If it makes you feel any better, EAX 5 effectively now has the same capabilities as A3D.