I think that was the final nail, along with the spotty distribution and the rising price. My guess is Mattel saw the buzz around the DC Direct figures and rings and wanted in on it, so they shifted their focus away from the truly classic nature of the line.Good point, I never followed or collected the line but the last time I was in a Target there were these Green Lantern versions of everybody and it seemed more like a DC Direct approach than mass market.
Those Action League figures on Flashpoint are a real headscratcher. The format is aimed at kids, and the storyline is something that is probably not even appropriate for children, and definitely nothing 95% of them will ever see. The line didn't even sell well with a B&B tie-in!