I think this may indeed be the reason why he didn't catch on with the the tea party or the GOP establishment but I don't believe that's the reason why he dropped out of the race.
Here my thoughts on the subject...
If you been watching Comedy Central at all you know that comedian Stephen Colbert has recently announced his run for "President of South Carolina" which happens to be his home state. After the announcement he turned his Citizens United mocking Colbert Super Pack over to Jon Stewart of the Daily Show seeing as how a candidate in the GOP race can not run a super pack as well as run for President. This in turn frees up Stewart to run ads for Colbert if he sees fit to do so.
Here is the hilarious clip....
(click image for video)Now given the amount of money that I believe has been raised for Colbert Super Pack and that he's was already polling better than Jon Huntsman even before entering the race this left Huntsman with no option but to drop out. It was either this or finish a distant fifth behind Mitt Romney, Rick Santorum, Newt Gingrich, Rick Perry and Stephen Colbert (Not necessarily in that order). That would've been an embarrassment even Huntsman couldn't live down (especially if he want's to try another run in 2016).
As Colbert lays bare the ridiculousness of this Republican race as well as the entire political process (due to the travesty of the Supreme courts Citizens United decision) the rest of the GOP candidates will drop by the wayside as well. Good riddance
Death to Citizens United.... Long live Stephen Colbert!