Here's my opinion on why it didn't work for him....
A host is suppose to have some sort of an father or uncle figure. Someone who can be funny, yet tone down your material a bit. As much as I find Lopez stand-up funny, I don't see him in that way. His material is too juvenile, and stereotypical for a late-night show. I was really pulling for him because I think it's great to have a diverse host(yes, I'm a latino. And no, I don't believe it was canned because he's brown), but when it comes to late-night, it's a whole different target audience. There aren't that many latino's who stay up to watch late-night, and if they do, then Lopez isn't the guy, it's Conan. Sadly, but true.
I think that he should stick to stand-up because that's what he's really good at.