The reason for its demise is the restriction against third-party development.  Only legacy and Content Paradise Generation 2 models were given the capacity to utilize that feature.  None of the DAZ models nor independent creators had those privileges, it was all proprietary, models exclusively marketed for Poser.  Believe me, if DAZ were allowed to contribute in that regard the Face Room would still be a viable feature.  But, seeing that the feature was squandered on models that didn't really meet user's expectations and vendor support, it's no wonder it was deprecated from the software.  It's a shame.  I do agree that the variation of skin color choices is rather thin in many artists, vendors, and users' palettes which seems to be contradictory to their outcry for more diversity yet lacking in the creativity of producing products for a broader market.  I would welcome the proliferation of greater character diversity but I don't expect that to happen any time soon.