James, I'd argue that you're not allowing for how slow DC generally was in making changes in editorial direction throughout this period and into the late 60's. It was pretty clear to the industry that "Super-heroes were Dead." Changing that thinking was going to take time and over-whelming evidence.

Note that even after they decided that Showcase would feature two sequential issues of an idea (starting with Challengers, a series about normal guys with some fantastic, super-hero trappings), the second Flash outing following that was another single-issue. Right after that, the "sure-fire" concept of Lois Lane got two whole issues. And then Kirby (who we KNOW works pretty fast) had two issues ready to go of the Challengers again. During this time, Julius must've had some pretty strong sales figures to shove in the face of the powers-that-be, because he got two sequential issues of the Flash.

I think it had as much to do with the editorial thinking as the market. Super-heroes had dominated throughout the 40's, and then failed. Post-war, sure...maybe they seemed less interesting or the readership moved on and the new kids found the stuff wasn't compelling. Editors caught up in finding that the tried-and-true formulas weren't working anymore obviously found it easier to say, "Super-heroes are DEAD!" rather than, "Oh gee, we really have to work hard and totally re-think our approach on how we're doing this to speak to a new generation!"

Clearly, this is what Schwartz did in the 50's by adding the space-age element to reviatalizing the old characters. I'm sure he was laughed at by other staff-guys who were convinced that in Comics, y'know, "Dead means DEAD!"

Goodman and Lee approached the Atlas revival by not only doing the exact same thing that they did 10 years earlier (except with commies 'stead of nazis), but doing it not-as-well by keeping the stories ridiculously short, the characters incredibly bland, and eliminating any sense of humor. And yes, the covers were inappropriate. Not to mention folks, please remember that McCarthy was pretty well finished as a political force by April of 1954, so this brand of red-baiting became not so easy to sell.

So of COURSE the re-launch failed, and of COURSE their poor decisions had quite a lot to do with it.