We have had some success with the Zigolo even though it does have a lot of drag. It also flys well at only 30mph and, with the low wing loading, can float in mild thermals. We could fly for an hour and that made it a viable electric aircraft. Barely. The bigger problem is that the classic tube and fabric open-air ultralight has limited ‘curb appeal.’ They are not for everybody. Maybe ultralights are just too ultralighty. And of course, the 2-stroke engine is a big deterrent for many due to the noise, vibration, and reliability, at least historically.
Yet the ultralight market is strong and growing. And for good reason. Flying low and slow is special. And flying with basically zero FAA oversight is really special. And, it may be the only form of flying left to those pilots who have lost their medicals and are no longer able to fly even LSA aircraft.