I heard it was more economical (fuel savings of 15-20%) and quieter than the average turbofan, but it would cost too much to get certified with the FAA unless the potential customers helped foot the bill. (No airlines were willing to do so, because when oil prices came down, it was cheaper to buy regular turbofans than to pay to certify UDFs.)
However, the research has continued, and the Antonov AN-70 aircraft in Ukraine is the first production aircraft to use unducted fan engines.