Cosine26,
Can't give you an exact answer ( I'll let others try to do that), but the major problem with the '17 (to many people) was the lack of a windage adjustable sight and something about that making it a lesser rifle than the '03. I always thought a marksman should be able to hit with any rifle regardless of windage adjustable sights so I never really understood that aspect of it.
Other than that is was heavier, blockier and wasn't designed in the US. I suspect some or all the above were factors with some people not liking it. Although I have read of many who did like it.
Of course some people just don't like "peep" sights and others do, maybe a factor?