Yeah for starters its expensive... Really expensive! Relatively speaking, i suppose
Its funny that my RDRAM was cheaper when i bought it 6 yrs ago than it is now...
Another thing is that it has high latency for random access. It has a lower latency if the memory addressed is readdressed, etc. That's why it was seen as better than DDR266/333 (what it originally went up against w/ RD800), especially for audio/video editing.
But with the advent of DDR400 and when DDR400 finally went dual-channel, it kind of brought DDR really close in performance to RD. Ask anyone which they would choose (a $50/128MB for RD or a $30/128MB for DDR), they choose DDR. Plus licensing stuff blah blah blah everyone started hating Rambus, etc etc.
Another thing was that it was almost impossible to overclock because of the strict timings that were needed. RDRAM was very very specific. Each wire on the chip had to be so long. Plus for RDRAM800 it only did 16bit interfaces, which meant we were back to the 'install in pairs' thing. RD1066 was the answer to DDR400 but by then everyone wanted to save $$$ and get more memory.
Funny thing is that the PS3 will use XDR - Rambus again. Should be interesting to see how that'll stack up.
That's how I saw it went down. I might be a little off on the timings and such, so hopefully someone will correct me.
RDRAM's high price is from the licensing costs...
Intel gave up on RDRAM because no one wanted to pay that much.