Lots of reasons the 556 fell out of favor. Most have to do with the 5.56 version, and the Russian versions, which really weren’t thought of that negatively, just happened to get caught in the undertow.
The 556 series was put out by Sig likely to capitalize on the perceived market desire for a reissue of the pre-import ban Swiss 551 series, that was highly regarded, but priced out of existence for many in a post-ban world. They updated the design which some features that felt would appeal to the desires of modern US shooters, like a new lower that took AR mags instead of the proprietary and hard to find and expensive Swiss mags, a picatinny rail on top of the receiver, and in the initial model, an AR pattern stock. Since the Swiss gun was no longer importable, it had to be made of mostly US parts. Unfortunately, they kind of botched it. The first model came with a heavy fish gill handguard, there were QC issue, like canted top rails on the early models, fans of the original Swiss guns didn’t accept it because it changed too much from the original and the quality was lower than the Swiss originals, and general shooters weren’t impressed because it cost much more than an regular AR, but didn’t really do anything better, and it was still pretty proprietary with little aftermarket. Sig came out with various generations that improved the quality somewhat, and reverted to more Classic design for the stock and handguard, but the damage had been done, and the original problems of not Swiss/ too expensive to compete with ARs were never really resolved. Sig tried again with the 556xi, which updated some features, which they claimed was modular (it wasn’t, actually), but then failed to support it with parts, accessories, or conversions because they were moving on to their next “big thing”, the MPX and MCX, so the Xi flamed out even quicker than the original 556.
If you can find a Gen 2 556R at a good price, it’s a decent gun. Just be aware that there is little support out there for it.