The technology failure was basically using Mastercoin in the first place. As it doesn't have the market cap or especially the liquidity needed to perform this kind of fund-raiser, while at the same time requiring all donations to be made in Mastercoin. I suppose it's not really a technology failure, more of a platform failure.
I'm not sure BitShares is the solution though as I'm not quite sure how it works. I suppose BitShares also will accept only it's own token as donations, as it's more of a limitation of the blockchain technology itself. Will BitShares be popular enough and thus have enough liquidity and market cap to allow this kind of fund-raising? Only time will tell..
In my view AGS is already miles above the Maidsafe fund-raiser in terms of fairness, but it's also advantaged by the fact that it's not a one-off thing, it will be used for several projects over a longer time period.
This question of how to fairly distribute coins or shares through a fund-raiser is one that the crypto industry will need to resolve. I'm not sure what the solution is, but one suggestion I'd like to make is set a cap for donations per adress and per IP. This will limit the kind of problems Maidsafe saw, where someone (the Mastercoin founders?) unloaded lots of illiquid MSC onto the poor people of Maidsafe. Probably around 10 people bought >80% of the Safecoins available via Mastercoin..