The problem with Lecroy scopes (traditionally) has been the world renowned horribly unusable user interface. I've worked at companies that have had top of the line Lecroy scopes and they always sat on the shelf gathering dust because no one wanted to use them unless they absolutely had no other choice.
This seemed almost on universal at every company.
When someone came around hunting for a scope to use, you'd tell them the lecroy on the shelf is available, and they often say "no thanks, I'll wait until you are finished with the Agilent/Tek."
I've heard these stories, but quite frankly it's beyond me how anyone who calls himself an engineer could struggle to do at least basic stuff with a LeCroy scope, no matter if it's a modern X-Stream scope or an older (pre-Windows) one. The front panel layout is really dead simple, as is the menu structure. And they all operate the same. It really can't get any more straightforward than this, seriously.
I'm not arguing when it comes to doing advanced stuff, which in any case requires that someone is a bit more familiar with a scope (no matter what brand), but doing the most standard and even many advanced measurements shouldn't really cause some struggle on a LeCroy. If you can't figure out how to measure i.e. the time difference between two pulses with a LeCroy scope then you shouldn't really be near a scope.
I bet the people from these stories never really tried one or are just afraid because all they know are simple (analog?) scopes, or simply because someone told them these scopes were difficult to operate. And it raises the question why companies are apparently buying these scopes when obviously no-one wants to use them.
Their brand took a lot of damage from this I suspect which is likely why they never became mainstream and were always know as the company that made those really high end top performance obscure scopes for obscure uses.
I'm not sure it did hurt them at all. LeCroy originally served the science corner (high power phyiscs), not EEs, so they probably didn't care much about what EEs perceive as "obscure". And it didn't prevent them from being present in nearly any high tech lab where people work on pushing the boundaries of technology. Probably because, as I said before, there is a point were Tek or Agilent or whatever isn't good enough, in the ultra high end there's simply just LeCroy and nothing else.