I agree that the cancellation of DS was not because the ratings. I cant see why ABC would want DS gone if it was the #3 ABC soap. Why would ABC affiliates drop it? It was still a successful show! 16 million viewers is still a good number considering that it is daytime.
The writers had a golden opportunity for some real soap opera with the return of Paul Stoddard. If they had allowed for that to be separate from the Leviathan plot, it may have been better off.
On the positive end of things, we also get Chris Bernau, Marie Wallace, Camilla Ashland, Elizabeth Eis (mangled accent and all), Julia, and several others . . .
Personally I was thrilled to see Barnabas as a bad guy, and to this day, I still prefer to see his wicked side rear its ugly head.
So quite possibly the affiliate cancellations of Dark Shadows had much to do with popularity backlash. Human nature is weird that way - one minute it's "cool" to be a part of a phenomenon, and the next it's "cool" to bash it. Everyone wants to be in the vanguard of what's "hip".