My take on MS Flight is that Microsoft was experimenting with a new strategy to introduce flight simming/gaming to a younger audience, while providing a better flight engine/scenery platform that could be expanded and enhanced for veteran flight sim hobbyists. Flight received such negative feedback from older FSX/FS9 users, was not put out for XBox AFAIK (for the younger crowd), along with the 3rd-Party developers not willing to partner with Microsoft giving them a commission on the add-ons they produced. Let's face it, Microsoft is a corporation driven by profit for their investors. To put money into R&D for a new simulator in this present economy isn't very smart, considering the market and customer base.
Flight to me had great potential, but it's marketing and with a instant gratification society ranting for their own desires/disappoinments, Microsoft had to stop developement and move on, erasing any hopes for a better simulator being produced by them. PC Gaming is on the wane, many people cannot spend money on a high performance spec PC to even run FSX, adequately. Let alone, Xbox, Wii and Playstation taking a big piece of the gaming market. And, with Tablets and Smartphones taking over what the PC had been doing for many years. I consider flight simming a niche market for PC enthusiasts who love their hobby and enjoy tinkering with their machines and software. X-plane doesn't appeal to me, but I still fly FSX almost everyday. For us, we need to support OrbX, A2A, REX, RealAir, Carenado along with too many to mention 3rd party developers to help our hobby continue...
MVGibbage had some interesting things to say about Flight's potential and it's managerial challenges in this thread: http://forum.avsim.net/topic/380841-flight-post-mortem/