Perhaps the Flip acquisition was a tilt at being a new consumer brand, but it never got enough traction to warrant further attention for something the size of Cisco.

Or it never got enough management love to grow to what it could have been. This is typical of large companies when they buy up smaller units. Flickr, Danger (MS Kin). The political landscape changes rapidly. The acquired CEO suddenly poses as another "threat" to the promotional opportunities of other managers, especially if he pulls off something bigger using Cisco's leverage.

(incidentally, my kids' school just bought a whole lot this year)