Colt just didn't know where they fit.

They weren't low end, but they weren't high end anymore. Outside of hardcore fans and cloners, the roll mark had diminishing appeal. When PSA and Aero can sell you a complete gun for less than $500, and you're still stuck with carbine gas guns for $1k, it's not hard to figure out how that's going to work out. Over the years they've tried to branch out a bit, throwing Centurion CMR's on uppers, KAC RAS's, other somewhat appealing options, but they were ultimately too spendy in this current market.

If Colt wants to come back, they need to look at the BCM way of doing things. Colt still has the reputation, but they need to figure out what the market currently wants, and it's not 16" carbine gas.
-Offer actual clones, not half baked clones like Troy or FN. Brownells does it a little better, but only Colt has the ability offer the correct rollmarks. They refuse to capitalize on that.
-Bring back the Snake guns
-Offer 1911's that people want... see clones above
-Expand the NFA offerings The 6933 is long in the tooth. Let's see a 10.3 MK18 Mod 0... or a 12.5"

It's almost like Colt has no one inside the industry with their hand on the pulse. I recall a few years ago, they were trying to selling $200 Chineium gunlights that were huge in size, and reminded me of Smith and Wesson's attempt at offering knives...