A friend of mine was involved with AVLIS and Pu-AVLIS. There were/are significant counterproliferation concerns with them. I'm not sure if that has anything to do with the lack of major commercialization, but I wouldn't find it shocking if it were true. As I understand it, it's one of those technologies that the US doesn't strictly need, but we really don't want the Iranians (or similar weapons-pursuing state) to have it.
It's a U.S. national security policy to prevent countries which don't already have capabilities to enrich uranium or reprocess spend nuclear fuel from aquiring such capabilities.
Technologies which have low energy consumption and need only small space and therefor are easier to hide, such Laser isotope separation, US wants to restrict to any country, even allies.
