It hasn't damaged the brand, just the corner of the brand that it might have represented.
It's like making a skill check or an attack roll; if you roll high, something good happens whereas if you roll low, nothing at all happens. SCL has rolled low on their Persuade-people-to-buy-me check. Result - status quo.
It's not as if they rolled a critical fumble, like Trapdoor did with DungeonScape. Even so, did the DungeonScape failure damage the D&D brand? Not really, WotC just signed up with Smiteworks instead and the world carried on turning.
I do see similarities between the two failures - a small developer with an unrealistic vision of what the market wanted, lacking the resources even to implement their own vision but carried away by their own hype until cold reality hits. But it's easy to be an armchair critic. Could I have set up a company and developed a computerised version of D&D? Nope. At least they tried, so we should credit them with that.
