It sounds a lot like greed and comeuppance to me. The producers of Avenue Q turned their backs n the road houses and chose to go to Vegas. They, in essense, said screw you to the longtime partners of Broadway who have spent decades and billions of dollars cultivating an audience and chose a quick return from Vegas, the most temporary town in the world.
The whole idea of taking a show on the road was to bring Broadway to the outer states - and increase tourism to New York. If you can see a show at a sit down in any of a dozen cities across America, the need to visit New York is diminished. The road houses siphoned off some of Broadway's potential audience, but at least they shared the wealth. Vegas just offered the producers a chance to make all their post-Broadway $$$ in one place.
As for the other shows that fave failed, it's all a matter of a miscalculation of audience. People do not come to Vegas for any kind of intellectual stimulation. They come to get away, to commit a "sin" of gambling, some drinking, maybe a visit to one of the brothels, do some shopping, put the kids on a waterslide - I don't see intellectual stimulation there.
Going to a Vegas revue or to see Tom Jones or Celine Dion does not require any serious concentration. Like most of the rest of Vegas, you sit back and go "wow."
But theater requires at the very least, a will to pay attention. At 100.00 a ticket, when 40% of the time involves dialogue, you have to follow along. It may just be too much for people who are calculating which Black-and-White slot machine to hit next.
http://www.broadwayworld.com/board/readmessage.cfm?thread=972787#3631451
http://www.broadwayworld.com/board/readmessage.cfm?thread=963561#3533883
http://www.broadwayworld.com/board/readmessage.cfm?thread=955158#3440952
http://www.broadwayworld.com/board/readmessage.cfm?thread=954269#3427915
http://www.broadwayworld.com/board/readmessage.cfm?thread=955012#3441622
http://www.broadwayworld.com/board/readmessage.cfm?thread=954344#3428699