One of the biggest problems, is that form.Z has a lot more competition now. In it's heyday it was untouchable because it offered arguably the most comprehensive set of tools on the market, for not much money at $1495.
Rivals were thin on the ground and consisted of software either for "hobbyists" (Infini-D, trueSpace, Ray Dream) or for well heeled pros with deep pockets (3DS Max, Houdini, LightWave, Alias PowerAnimator, Softimage 3D).
From the latter group, Alias PowerAnimator at $30,000 came closest to form.Z when it came to modelling power. The buying decision was obviously a no brainer.
Cinema 4D, Maya, and Rhino were not born untill around 1999, and they signalled the decline of the dominance of form.Z, in terms of power to value ratio.
In addition, "The Joint Study Program" ensured a steady stream of future new users, by seriously involving students with the software early on. Rave reviews flooded in from various publications around the world. These were the golden years, and lasted for about fifteen years, 1991-2006, but then the decline began.
I believe that the only way back will be to try to claw back the lost respect, but the question is how? Indeed, can it be done..... or is it too late?