I would imagine people waiting for the DL cameras to come to the market must have accounted for at least some part of the reduced compact camera sales experienced in 2016. If there is a high profile launch, people get excited and then disappointed when it is not followed up with product availability.
Nikon also made a DX compact camera (Coolpix A) which had nice image quality but it was discontinued. I guess it could not be moved at a price which was profitable for Nikon. I didn't buy it because the AF was slow. I gather the DL cameras, like Nikon 1, would not have suffered from this particular problem.
I have an iPhone 6 which has a nice camera to begin with but a slight knock lead to loss of focusing ability in the camera and thus the camera became useless. Fixing it consisted of replacing the phone in its entirety. Very expensive. These cameras integrated into thin smartphones have gotten a lot better than they used to be, and they are good for e.g. quickly copying notes and sending them by e-mail, but I wouldn't use them for photography as an artistic pursuit myself. The focal length is fixed for one thing and while the image quality is good for some purposes the user interface, time response and image quality in print isn't that great. Ruggedness is extremely poor in my experience.
Nikon seems to be failing to implement a practical and easy to use wireless transfer of images to mobile devices; they get a lot of criticism for their mobile apps and especially Snapbridge. This could seriously affect their image and camera sales as other manufacturers seem to be doing this part better. In desktop applications, the loss of Capture NX2 and its half-hearted (or quarter-hearted?) replacement (NX-D) have been disheartening. Lack of efficient, reliable, live view AF in DSLRs is one area where Nikon is seriously lagging and as live view AF is the heart of a successful mirrorless product, it has greater implications on Nikon's perceived ability to lead technology development than its practical significance in DSLRs is. Nikon should invest in
- software development and take testing seriously
- make a proper wifi implementation in all cameras
- implement AF similar to Canon's dual pixel AF in live view and video
- make at least some cameras with competitive video dynamic range
- make better manual focusing especially in their less expensive lenses
- launch a successor to the D810
- launch a DX or FX compact camera with fast AF
- if they can do the AF bit above, launch a DX or FX mirrorless ILC system
- facilitate reading of full EXIF data with all the camera specific functions in third party software including Adobe
But above all they should test their products, including software, extensively, before launching it on the market.
For me Nikon DSLR products work very well. Mainly I am disappointed with their software, lack of fluid wireless connectivity, poor manual focusing in some of their AF lenses, and lack of reasonably fast live view AF. For my applications the image quality Nikon DSLRs is excellent and the usability for most applications is very good.