Basically, it was extremely poorly-run (tons of scheduling conflicts, dealers getting screwed on space and money), tons of money went missing, lots of attendees and guests (most notably Tara Strong) got stranded in Vegas...it was just a big clusterfuck.
From this article (mlp.derpynews.com/editorial-la…: "The con was riddled with enough small problems to warrant a poor report had the con succeeded. However, Las Pegasus Unicon went above and beyond the call of failure. The convention was shut down early on the final day. Guests hit with massive hotel bills and kicked out of their rooms. VIPs not getting payed. Charity money disappearing."
Seriously, just Google "Las Pegasus Unicon", there were tons of articles about it. As I said, big clusterfuck.
Sort of. People started to question the con scene after that - whether there were too many cons, whether we'd be able to get the talent to show up at future cons, whether there should even BE future cons. It was a mess, and it was very uncertain for some time. Which really sucked, because it was only a few months before BronyCon, which I'd had my heart set on attending since January (I did get to go, thank goodness).
The good thing that came of it was people who wanted to start new cons kind of had to re-think whether they wanted to go through with it, whether they were able to afford to put it on and run it smoothly or not. Some cons got cancelled (thankfully BEFORE they had the chance to completely blow up and strand anyone anywhere), and it was probably for the best. Better to realize beforehand that maybe you won't be able to pull it off this year than to try it and have another LPU on your hands.
I tend to think that people in this fandom think a bit TOO hard and look a little TOO deep into stuff that really isn't that big. But it sounds like this was a milestone. One of those instances where to see what to do right, you have to see what's done wrongly.
Exactly. Definitely one of those "necessary evil" type situations. As I said, it's better for people to take a look at whether they can actually pull it off and decide against it BEFORE they attempt it than to just say "Fuck it" and try anyway only to find out they weren't prepared and screw a bunch of people over, thus giving the new con scene an even worse rep.