After 2 years of development and millions taken from their ICO, this is the best they can come up with? What happened to their child chain or is it side chain implementation for dapps? That was the selling point of their project wasn't it?

I also have not seen any known projects that used Lisk as their platform for smart contracts and dapps. Why is this?

At least Ethereum has the Cryptokitties hehehe.