I'm baffled too. I think the core problem of Escrow is that it's good for things where the transfer of the property in question is low-complexity electronic bit flipping (domain names) but doesn't solve enough of the problem everywhere else to attract big dollars. Disputes on goods and services usually result from disagreements about what's being sold (or fraud), not the absence of escrow.
So Escrow lives and dies by domain names, like it always has, and they're not the only game in town for that. There's been a lot of talk about other customers (Ebay, particularly) but whenever the domain name market craters, Escrow's revenues crater too, regardless of how many pictures of nice watches are in the annual report.
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