They did, it's called "Just Walk Out" - https://www.justwalkout.com/ and https://aws.amazon.com/just-walk-out/ . I've seen it a bunch at airports, and occasional random city locations.
I think this is partly due to WFH and loss of foot traffic (these were usually located in business districts, where the lunch crowd would come in and grab a prepared meal and walk out). I don't think it was due to technology not working or uptake being low.
Downtown Chicago had a few that were fairly popular. COVID killed the office crowd.
Amazon Fresh is all over the Seattle area and in many parts of the country (a number of them are in Chicago)
I have had them miss items and fail to charge me for them, though. Even if you want to be honest about it though, there’s really nothing that can be done, since they don’t charge you and provide you with a receipt until hours after you’ve left the store.
There are a lot of ways I’d describe the Amazon Go shopping experience. Creepy? Yes. Unsettling? Quite so. Oddly evoking the feeling of being a rat in a maze? I wouldn’t argue. But stressful? If there is one thing it is not, it’s that.
The point is bad news spreads to "I won't bother".
Lots of people use it without any issues -- if something isn't truly a dealbreaker, the "I won't bother" crowd tends to become a minority. The Law of Large Numbers will work as expected.