The Schwinn history book helps explain. Paramounts were not that antiquated, but probably not a money maker, New technology, investment cast lugs and such had not been adopted, but for a struggling company, a loss leader, or break-even product was more stuff to manage than was useful.

Overrated? depends on what you lusted over as a kid. Don't forget they came in road race and touring geometries, and one could custom order the design within reason for no upcharge. Could not do that easily from Europe in general.