https://www.youtube.com/watch?v=eqvSJp-6qT4
and tell me with a straight face that someone not knowing the book would be able to understand this. It's pure desperation. Don't get me wrong: it's beautifully shot, especially with the in&out-fading of the face, but it does not work to convey the setting of the story. It's simply too much information.
Quite famously, and also in this case, he refuses to even discuss it because this is a place in time he would rather not go to. It must have been traumatic for him. But this failure was a blessing in disguise, as he did this little movie "Blue Velvet" afterwards, and the rest is history. Lynch would not be where he is today without this failure. After "Elephant Man", he was destined to be the next Lucas, but instead, he pretty much defined a new genre.