I think it was a lack of supply here in the states.
I didn't buy an A1200 back when it was released because I had a fairly decked out A3000 w/040, and an A500. The gaming consoles (Snes, Genesis) had really overtaken the Amiga by that time. I just didn't feel the need to pony up for an AGA machine, and I know a lot of my friends at the time felt the same way.
I think a lot more people had A500's in Europe, and the A1200 was a much more logical upgrade path for a larger group of people. All my friends were rocking big box Amiga's with lots of expensive addons.