I believe Niche expected a much larger return on investment than they actually got, and when the numbers started to slide, they chose to run the site attracting the minimal income from the occasional click-through, survey and ad impression to eventually recover some of the losses. I can't imagine any other reason they'd continue to allocate hardware, network resources and funds to it in its current state.
In briefly working with Niche, there were individuals there interested in doing something with MacTalk, but considering the amount of work required in revamping it with no guarantee that it would ever turn a profit again, it made little business sense to them to devote any time and energy to it. Those at Niche and those that wanted to save it, myself included, as much as we told ourselves it was doable, we were never on the same page.
Personally, I foresaw a complete knock-down and rebuild in its future, retaining little but the database, and that was a monumental task for two or three staff with perhaps an hour a week for MacTalk and some volunteer members scattered around the country.
Still, I would gladly have made all of that effort if given the chance. MacTalk served such a critical role in developing my enthusiasm for and furthering my experience with computing and technology, and I think it did the same for so many other Australians. Shame Niche didn't see it the same way.