This thing cost upwards of $33 million to start up. Kinda makes Cuil the Ishtar of search engines, when you think about it.
Cade Metz at The Register has written an enlightening - and hilarious - essay about what seems to have gone wrong with Cuil. It reads frighteningly close to what happened at ION Storm (John Romero's now-defunct game company that promised to "make you his bitch"), given the ratio of wild promises to burn rate of venture capital.
Whatever is going on over there, Cuil's owners need to fix things fast, or else their little project will be a vague memory by Christmas.