One of the huge mistakes possibly has been that he kinda announced "analog modeling", as in being able to deliver pretty much any classic amp tone in one single unit without using digital components in the dry signal path. Not only is that like dragging you into a corner you can't escape from anymore, it's also an incredibly tough task, especially in case you have high standards. Oh, that Vox sound isn't just right yet again? Time for another hardware revision whereas in the digital realm it'd just be some lines of code.
Which is why he has taken this long to get it right. You only get one chance at this when software alone cannot fix issues.
The Amp 1 series is already a testament that the tech works. The Mercury Edition sent my much more expensive Bogner packing, and the Iridium is just as good as my Mesa Mark V - though obviously not voiced exactly the same.
Add to this that over the years this took, the average quality of digital modelers got a lot better. Even some pretty cheap devices produce very convincing tones by now. The very same devices are packed with features.
Yet there's still a huge load of debate about what sounds/feels the best and all that crap. We have had "way more than good enough" for many years already in various products.
And when you look at the higher ended bracket, there's now things such as the HX Stadium. Which, from all I would imagine given the currently available information, would munch the AmpX for breakfast, especially as I also happen to think that the UI on the thing sucks (we've been talking about standard pots vs. endless encoders already).
The only things in favour of the AmpX would be a) that it's analog (but who really cares these days?) and b) that the dry path would have no latency (but again, who cares about 2-4ms of total latency?).
I think the appeal is that it is a full 100W (as in equivalent to a 100W tube amp) amp in the size of about the Boss GX-100.
People lump it together with modelers but it really is meant to be plugged into a guitar cab first and foremost. Everything about it is likely designed to allow for an easy live experience.
The Amp 1 Mercury and Iridium feel very drastically different to play, and if the Amp X can alter the feel of the amp like that, I think there's a lot to like for the people who care about how a particular amp feels to play. I think some of that can be very hit-and-miss for modelers in the "modeler -> poweramp -> guitar cab" scenario. Running eg. an Axe-Fx 3 through a Fryette PS-100 is great, but it also required work to get it to feel like a particular tube amp through the same cab - none of which was very intuitive.
I don't agree with many of Amp X's design decisions and they could very realistically be its big downfall, but I still want to see the final product before judging.
So, what's the target audience? Does Blug expect some analog afficionados to get rid of their existing rigs? That very likely isn't going to happen, at least not much. Or does he expect being able to compete with digital modelers? That's even less likely, especially given that the thing certainly won't come for cheap.
We can only hope for the dude that he's sorted financially, because AmpX will very likely never be able to even just recoup all the R&D costs, let alone be profitable.
There's room for products in their own niches. You could easily ask why people buy e.g a Friedman preamp pedal instead of a complex modeler that does way more.
I think the biggest hurdle for BluGuitar has always been to get people to try their devices. They have none of the familiarity people expect from amps. It looks different, its EQ works in a massively different way (even between the two Amp 1 versions) and the Mercury requires a lot of the same tricks that are used to tame e.g old school Superleads. The Iridium is by comparison much more approachable especially with humbucker guitars.
If the Amp 1 series had been a tolexed wooden box, it would have likely been a lot more popular. But it wouldn't travel in a backpack like the Amp 1 does, not work on a pedalboard etc. It has taken years for pedalboard amps to become even a little bit popular.
I still worry for BluGuitar about how it will turn out. If it had come out years earlier, it'd be fine but now it seems like it could be dated to use right out of the box compared to HX Stadium, QC etc.