1. It was trying to make things more comfortable, in reagards to the citizens relationship with the government.
It offered a certain service, were the clients would save time and effort in order to complete their tasks.
2. During the time they started 1998/99 most of the visitors online were still very young. However those who pay taxes, parking-tickets and have other sort of business with the governemt are usually somewhat older. And it is always harder to be able to create a sense of trust among older rather then younger people. And also the espinoage and the dotbomb in 2000 did have certain effects on the outcome.
3. I would go with govWorks.com
4. For me it looks rather "empty" and not something I think I could rely on. Meanwhile if you look at (for example) amazon or ebay, it manages to create a sense of safety. Even if these 2 examples differ in what they have to offer it's visitors.
5. I would use a logo with images above.
6. The fact that they failed!
The idea was right, the timing was ok, the people, and yet it didn't work. I don't think that their failure was because of the increaed competition. It was more beacuse of the people themselves (the CEO and Tom etc) not being able to hold on to it.