Simply put, Night Flight was to TV in the '80s what FM was to radio in the '70s - a threat. FM was soon tamed after a few years, so it became as mainstream and predictable as any AM station, and so was Night Flight.
I would just set the VCR and go out, knowing I could come home and watch something I had no opportunity to see or hear anyplace else on cable or network TV. There were nights I chose not to go out to whatever great new club, since Night Flight was always far more interesting.
Unfortunately, it had to end, and it did - one night, there were no more banned music videos, no more unedited films, no more questionable shorts and cartoons, no more head trip, all of the brilliance was replaced first by some inane English rock show that seemed to be made for an audience of 12 year olds, and then Gilbert Gottfried up all night, which put me to sleep.
I assume USA had to let it go, since it wasn't pay-per-view or a premium cable channel, and therefore was too risky for advertisers afraid of offending those good parents who wanted to use safe family channels like USA as their electronic babysitter, even at 11:00 pm.