My recollection is that it was acquired by Yahoo and promptly stopped receiving any attention. At least one of the founders left Yahoo a few years later. Not unlike what happened to Flickr, except Flickr had enough momentum and traction to not completely die. It wasn't long after all that that Yahoo Brickhouse closed up completely too. I don't think its fate was a result of anything intrinsic, just a byproduct of Yahoo's decline.
Flickr negotiated a separate HQ as part of its acquisition, which helped them stay independent for a little while. Delicious had no chance under 39 layers of Sunnyvale management.