From where I am sitting, +Google+ is working just fine. It does what it does, and it's useful to me. Is this happening because it doesn't have a billion users yet or something? Did they seriously think that would happen? I just hope development doesn't halt, because I have nothing to replace this with.
I started a Facebook account and a Google+ account within days of the same time in July of 2011. I posted the exact same content to both for close to a year. I have lost track of how many new customers I have gained through Google+, it's well into double digits. Through Facebook that count was, and remains to this day, zero. I don't use Facebook at all anymore, and haven't for years.
I have met new people on Google+. On Facebook people I went to grade school with came out of the woodwork. And no one else. I don't use Facebook. It's a poor website, and more significantly, it does nothing for me. Google+ has been completely different on the other hand.
Google+ can be great without being everywhere and everything to everyone. It can generate valuable information for Google, and a valuable experience for it's users. I don't know what's happening at Google, I suspect very few people do, but I hope there's no cause for alarm.