There are a lot of factors why Czech Republic didn't do as well as similar 'chick shaking hips' songs.
First of all her live vocals were quite bad, out of pitch and thin thin thin voice. Kalomira's (Greece 2008) voice was just as weak but they did a better job in covering it up by having decent backing vocals. I mean Kalomira never really sang by herself, she always had support.
And the Czech song just didn't have the catchiness that is required to do well (to most people, i know some will disagree). The melody and the lyrics were dull and just didn't stick.
And the actual performance and choreography was forgettable (I don't even remember it).
So I believe there was not one main reason but a lot of different factors causing this song to bomb last year.
I personally don't care for this kind of music (Czech, Greece, Ukraine 2008 or Romania 2009 just a few examples) but even to me the Czech song was the weakest one out of those 4 I just mentioned.