From what I can see, LT is not "failing" - it's doing really well. I'm not nuts about the rails thing either, but that's a stylistic decision and if it helps Josh sort out the issue of space being, well, big - then so be it. I'll get used to them. Same with the flight model.
The UI looks lovely - far better than the console-driven mess that is E: D.
The AI looks far in advance of what E: D is currently offering.
There is a proper supply & demand economy, unlike the pseudo random number generator that E: D uses. You can actually see NPCs flying around affecting it - unlike E: D where the NPCs have little or no bearing on the hidden economy.
You can build stations, manage fleets, own planets, and so on in LT. Not so in E: D. If you want to, you can build an empire.
You can play offline without any connection to any "evolving"

universe - and I don't care what DB might or might not say at this point about making the E: D servers public should FD go to the wall or the game cease to be profitable. Without a written escrow agreement in place, his "promises" are worth as much in reality as the promise to deliver an offline mode to begin with (i.e. bog all).
Even mining looks more fun & realistic than the rubbish implementation of E: D.
By the way, I pledged 20 times more for E: D than LT, and have been closely involved in E: D from day 1. I'm not biased in any way here - just calling it like it is.
E: D is currently a mess, and as a game is nowhere near what was promised in every conceivable way bar the flight model & the galaxy. It is actually the one that looks more like a tech demo at present.
LT looks to be far in advance of what was promised already. And LT can be modded to the nth degree - whereas in E: D we have to hack around in XML files (which get overwritten after ever update) just to change the colour scheme to something usable in the Oculus Rift.
Bring on the beta.