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With the right backing and leadership they could have gained ground but people don't vote for them because they think it's waste of time as they'll never gain power. All because of the two horse race/first past the post system.
In fairness Clegg did well on the TV debates (spoke sense, was measured and seemed like fresh alternative to the usual shower) and reached his Everest when he landed the Deputy PM role. He managed to get cabinet posts for Cable and Danny Alexander but the rest of his party didn't get invited to the party. There was always going to some kind of resentment plus the Tories were always liable to blame the Lib Dems when anything went wrong.
But people did vote for them in 2010, they had 23% of the votes and could've been something to build on.
Had things had gone differently I do feel that the Lib Dems could've been a major party by now.