Everything I've read so far, points to a couple possible reasons as to why it might have been pulled. They did say launch was months away, in the initial video, but then it was released for a day or so in the market.
However, the user interface of it was lacking, very confusing if you didn't know what to do or how to get around in it. One statement even went to say that once inside the app, there was little in the way of "limiting" what it did. I do realize it's supposedly only sharing what was taken from within the app. I'd be a little more wary myself of that. No I don't walk around with porn on my phone. However, I can certainly see how someone might think it was fun to share the birthday party scene with other party-goers, but not say, the embarrassing photo of their son with his head stuck in a chair or something. If the app had ANY access to anything outside it at all, I'd never use it. The statement made, makes me wonder.
Also, and this might be a bigger one...in a PC Mag review, they hit a good point. Confidentiality. While a fun app, other people around you can still see into your world. That's the point. But if you work in a place where there are things going on and proprietary materials, you'd be risking that (and likely your job) if something unintentionally gets caught on camera and shared. "Coke employee fired after Secret Formula is caught on camera and shared to the world" or something.
While interesting in practice, I think they more than likely just have some bugs and kinks to work out, before releasing fully. It was out before, so I imagine an APK is out there somewhere. But I personally want a lot more safeguards in place than what seemed to be there to start.
EDIT: Their website,
http://www.color.com , shows the iPhone app still out, a "New" Android version coming soon. Must be something got buggy on Droid.
Oh...and I just realized, most of that 41 Million probably paid for the domain name. Seriously, that HAD to have been taken before lol.