OpenID 2, which was the first version intended to be broadly useful outside of LiveJournal, was published less than two years ago. In that time, OpenID has gained support from every major identity provider and most major consumers. Anybody who uses LiveJournal, Wordpress, StackOverflow, or thousands of other sites can use OpenID instead of a traditional login.

You're making a case that OpenId hasn't succeeded yet. that's not the same as making a case that it has failed.

Of course, success is subjective and relative. I see a little success every time I log in to stackOverflow via OpenId, or get a OpenId guest comment on LiveJournal.