The head and tail of the eagle were opposite of the wreath on the reverse resulting in poor metal flow under normal striking pressure. As a result many of the coins showed weakness especially on the head and tail of the eagle. It was replaced by the IHC because the design on the obverse was more central and didn't interfere with metal flow on the wreath of the reverse.
Quote: why did they only produce them for 3 years?
Two years, 1857 and 58. The 1856 isn't a coin, it's a pattern. The design wasn't adopted until Feb 1857. It is also an illegal design. The Act of 1837 specifying what should appear on the coins of the United States specifically excludes the use of the eagle on the one cent piece. (Maybe that was brought to their attention and it might be another reason the design was changed.)
OR Eagles threatened to sue unless they got royalties from the sales. Really a good question though. Since it happened so long ago, I wonder if anyone really knows the story of why not keeping that type.
Quote: The deficiency was not in the artistic merits of the design, but in the requirement that raised areas of the obverse should not be in opposition to the reverse relief areas. The eagle's head and tail were opposite from the wreath on the reverse. To remedy this problem, Longacre fell back on his Liberty design for cent design trials in 1858
page 159 of The Flying Eagle and Indian Head cent Attribution Guide, 3rd Edition Volume 1
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