I worked on the design of wireless USB chips around 2008 - 2010. They worked - you really could get USB 2.0 full rate connections wirelessly and we had some neat demos. I would say the major problem it had with adoption was that wired USB also provided power . (A lot more people use usb to charge their phone than to sync their phone.) So great - wireless connectivity... but you still have to plug the device into a ca…
I don't see why Bluetooth took off and wusb didn't. It must have something to do with marketing.
Bluetooth didn’t really hit mainstream until the arrival of chipsets that multiplexed Bluetooth and WiFi on the same radio+antenna. My memory is that happened sometime around 2007-2010.
At that point, the BOM cost to add Bluetooth to a laptop or smart device became essentially zero, why not include it? Modern smartphones with both Bluetooth and Wifi arrived at around the same time (I suspect these combo chipsets were originally developed for handheld devices, and laptops benefited)
And once Bluetooth was mainstream, we saw a steady rise in devices using Bluetooth.
WUSB operates on a completely different set of frequencies and technology and couldn’t share hardware with WiFi. Maybe it could have taken off if there was a killer app, but there never was.