According to https://goughlui.com/2013/05/02/tech-flashback-iomega-zip-10... and https://www.youtube.com/watch?v=ggWW67iPgXI (which shows a comparison table from a contemporary magazine article), the SuperDisk LS-120 was slower than the Iomega Zip. It was a pretty cool idea to make the drive backward-compatible with 3.5" floppies. As a child reading computer magazines I kind of wanted one—or a Zip drive. However, the lower speed combined with launching after Zip (1997 vs. 1994) really explains why the LS-120 did not succeed on par with Zip. According to the video I linked, iMac owners bought USB SuperDisk drives for their regular floppies. (I ended up eventually getting a CD-RW.)
What I think might be a bigger shame is that some version of FD32MB (maybe less dense and less slow) did not arrive earlier and as an industry standard. In 2001 it was far too late for it. Here is an article announcing the FD32MB technology: https://www.theregister.com/2000/10/23/32mb_on_a_humble_flop.... The Wikipedia page for the Superdisk also mentions it. Might it have had a chance if it had launched with the SuperDisk LS-120 in 1997? I am not sure. (And how would the reliability have been with mass adoption? Worse than 1.44 MB floppies'? Maybe it was for the better.)
There was also the (quite hard to find) 2.88 MB floppies, which actually had software support in the various OSes at the time.
LANs themselves had also come down in costs so even ad-hoc computers near each other often had Ethernet or similar, so the demand never really picked up.
Those who needed big transfers offsite used Zip (or Jaz, those things died like flies) until CD-Rs became cheap enough.
What I think might be a bigger shame is that some version of FD32MB (maybe less dense and less slow) did not arrive earlier and as an industry standard. In 2001 it was far too late for it. Here is an article announcing the FD32MB technology: https://www.theregister.com/2000/10/23/32mb_on_a_humble_flop.... The Wikipedia page for the Superdisk also mentions it. Might it have had a chance if it had launched with the SuperDisk LS-120 in 1997? I am not sure. (And how would the reliability have been with mass adoption? Worse than 1.44 MB floppies'? Maybe it was for the better.)