Besides the obvious reason that sales were low, think about this for a second... What would the lude be if you changed everything "bad" or unideal about it? Nobody likes those backseats. Everyone always wished the lude was a few hundred pounds lighter. Anyone making decent power wishes it were RWD. Those that track or autox desire a more balanced weight ratio. Hell, their are so many people doing the HID conversions, why not chuck that in.
Basically, the way i see it is, if you take the prelude, which is a sport-compact or rather half-ass sports car, and change everything people don't like about it, you get a S2k. Even the newer S2ks have 2.2liter engines, how funny is that? I've always seen the NSX as the older brother, the prelude as the younger teenage brother, and the S2k as an evolved prelude, or stable adult in this scenario.