As I understand it (and I still own an Elph Jr which was/is a great super compact P&S camera) there was a plan to make all sorts of film available, B&W, C41 and transparency, spread out among the film makers. That part never really happened; in the peak of APS there was only one slide film and IIRC, no B&W. Cameras targeted at "serious" photographers would be handicapped with such a limited choice of film. I vaguely recall the processing for APS transparency film required sending it to Europe which is a slow starter for the potentially sizable US market too.
But hey, I also seem to recall Polaroid came out with instant movie film about the time consumer video cameras appeared! Ya takes yer chances.
(Back after four days without power.)