Bad title
Privacy policy tool failed "because of" browser rejection is obviously bullshit.
Why did the browsers reject it? This question is key. The most likely hypothesis is that the browsers rejected it because it was rubbish - either pointless or overblown (or, most likely in the case of the W3C, both).
Browser rejection of privacy policy tool "because of" W3C ivory tower bullshit is probably a more accurate description here. But the W3C isn't going to put that in a press release.