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I loved the demo.  I haven't played yet (was broke when it released ... still broke now), but friends swear by it.  Anyway, my take?  Three things:

1) October 2010 was crowded with decent-to-great releases.  NBA 2K11, Medal of Honor, Vanquish, Castlevania: Lords of Shadow, Fallout: New Vegas and Fable III all come to mind but I'm probably missing some.  Those games went on to varying success (2K11, MoH, FNV & F3 great; Enslaved, Vanquish & CLoS not).

2) Reviews pegged it as a relatively short game with no replay value or multiplayer element.  That's code for a ton of gamers to either rent or wait until it drops to $20-30.

3) Marketing.  Wasn't much, but I'm sure that also kept project costs down.