But... It was all so expensive. So expensive that for a while the perception was that Nikon was pricing it to protect their precious F-Mount lineup.
And, maybe they were, which wouldn't have been the WORST idea, because it did keep too many people from buying into the system (which, quite frankly, may not have fared well long term anyway, once the right technology was in place for larger sensors to focus as fast as the 1 series could.)
I do also know that some of the system's cost is because the small sensor size necessitated -very- good glass to get good image quality. (Smaller sensor but same MP = higher demands on glass)
The tech was pretty good right down to the end of the line. The J5 is a pretty fantastic camera. Basically a Sony RX100 (it is a Sony sensor unlike the Aptinas in its predecessors) with interchangeable lenses.
I still prefer the handling of my J5 over my Micro 4/3 cameras. The J5 is what the V1 should have been on day 1.
The lens ecosystem was small (I have most of the "affordable" ones), but they happened to be in the focal lengths that matched up to my favorites on my APS-C DSLR at the time. The one thing I loved about the N1 was how small they were. I could carry multiple bodies and lenses in a small bag that would be filled up by one dslr and two lenses.
Yeah, it was a bit pricier than it should have been, and their marketing sucked. Instead of trying to sell it as a great camera for people who wanted something small and capable they tried to sell it as the perfect second backup camera for DSLR owners. Which is stupid because the perfect second/backup camera for DSLR owners is another DSLR with the same lens mount.
While a lot of people mocked the Nikon 1 series (because of their strange form factors and handling), they were the only mirrorless cameras that had autofocus nearing DSLRs for several years. They were actually pretty good cameras.