I suspect the 'hay day' of the sub-target rifle machine was 1907-1908.  By 1908, the Public School Athletic League of N.Y.C. had put one in each High School, (reported variously as 11 or 12).
  Denise Conni, (N.R.A. Marksmanship Qualification Program Coordinator), in "100 and Counting" reports on early PSAL-NYC activities and competition with .22 Rifles and the ..."sub-target rifle machine -- a marksmanship training device with more than 300 parts and a lofty 1904 price tag of over $200..."
  I would guess over time the sub-target rifle machines required maintenance, adjustment, and repair.  'Virtual Shooting' and one machine per high school probably lost out to the economy and match environment with .22 target rifles.
  Possibly, 'tbergdall's' Krag, converted to .22 rim fire, is testimony to what happened:  An expensive training device probably lost out to target rifles that were practical, fun and inexpensive to shoot indoors.