Is there a reason why type 3 tapes didn’t catch on?

I used the TDK SA-90s and Maxell XL-IIs and certainly cost impacted what tapes I purchased.

Incidentally, the tapes I created are still functional.  However, if you consider the source of a quality tape deck in the 80s against another source like a Rega P1 or Node 2i...the tape doesn't fair very well.