Indeed and it failed for the same reason than, right now, touchscreen in PC is failing.
Yes - it's called COST. There is still a premium for touch-screen, especially for the desktop. Look at where touch DOES exist for desktops - the AIO market (where, amazingly, Apple's iMac has avoided touch like the plague - despite it having the same screen-size as Windows 8-based AIOs) - however, AIOs are outliers in terms of PCs. You can add touch support to existing hardware; however, it's still cheaper to buy a sharper-pitch non-touch flat-panel display than one that supports touch.
Windows 8 (on the OS end, and on the application end) has better touch support than previous versions of Windows - not even the critics of 8 dispute that. However, touch is still at a price disadvantage on the hardware/display end - about which Microsoft can do nothing, as it is beyond their control at this juncture.