It appears to still be in production. It is part of the M&P line. In my VERY humble opinion, the cylinder release is definitely a major reason that it did not become more popular. It's not that it is bad. It's just that it is so different from every other J-frame out there, that anybody who had been shooting revolvers for a significant amount of time was probably reluctant to have to train with a new style of cylinder release when the 442/642 can be easily found for less money.
One of the reasons firearms tend to be made with very similar ergonomics across brands is because shooters seem to want some amount of consistency in operation between similar platforms. How likely would it be for a new semi-auto to become popular if it required a new motion to drop a mag? It could happen if the gun is really great, but that would be a big handicap to its success.
I think it was largely the same thing here. Most people were very used to the cylinder releases on standard S&W, Colt, Ruger, Charter, Taurus, Rossi, Etc, Etc. revolvers and did not care to train new muscle memory for reloads. So while it may be the best shooting small frame, lightweight, 38 snub for some, unless they are brand new to revolvers they are more likely to choose a model that is more similar in feel and operation to those they have used before.
I myself was thinking about trying the bodyguard when I decided I wanted something newer/more powerful than my older model 36 that was not rated for +P ammo. In the end, I nixed both the bodyguard and the LCR in favor of a 44 special. YMMV