The XL3-7090 was about on-par with Luxeons of the same era in terms of luminous output.
But - they had a strange beam profile, did not use a conformal phosphor coating (poor focusing in reflectors), had horrible off-axis color quality (turned very green on the sides), and had an exceptionally high Vf (4V at 700mA). They also had the same basic shape of a package that the XR-Es do. With all of those issues, they weren't compelling enough of a product for many to consider, especially with the vastly different package and beam profile.
I believe the Xlamp XL7090 was their first competitor to the Luxeon line of products. It was basically the same as the XL3-7090, but only rated for 350mA. It pretty much shared all of the same characteristics as the XL3 that I covered above, again making it less popular than the Luxeons.
Only when the XR-E came out was it a compelling enough product for the beam profile and packaging differences to be outweighed by the sheer difference in output that the XR-E had vs. Luxeons available. When you nearly double output and efficiency vs. your competitor, it makes it a very compelling proposition to switch.