In my view the issue has been the lack of a suitably capable design. The Wallis machines are very good at what they are good at, but times have changed and the days when it might have been acceptable to send service personnel aloft in such minimal aircraft are probably long gone.
The current sport aircraft are pretty good, but in the UK they operate on permits so aerial work (other than flying instruction) isn't allowed. I understand that they are being used in other countries for observation etc - but how serious that use is or whether it is trials inflated by a bit of marketing hype I don't know. There are, for example, a few of the current European machines on trial in the US with Police departments.
There is at least one project running to produce a viable commercial gyroplane - if that succeeds then we may see gyros replacing helicopters in some roles.