The BitLicense was a blow to the NY Bitcoin operators, because it placed a complex and expensive barrier to entry for anyone that wanted to use Crypto currencies in NY.
The BitLicense is expensive because there is not enough user demand within NY to justify the time and money you have to spend to get it. This is why a lot of crypto related businesses prefer to ignore NY because it's just not worth the hassle. I can perfectly understand that. NY has been over-regulated for decades. It affects more industries than just that of crypto.
I like that businesses ignore NY because it's a clear indication that this state is not competitive compared to the other states. It's losing out and this is how it should be.