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It had a lot to do with the Great 6 (Benoit, Angle, Eddie, Chavo, Edge and Rey). All those guys were having a bunch of tag matches with each other that was tearing up most of the shows. Angle-Lesnar on top didn't hurt either.
Also, on RAW at the time you had HHH, who had no business being in the ring with his injuries having terrible matches with Kanee, HBk and then Nash.
They really started pushing RAW over SD after Goldberg started working with Hunter, then they did the Benoit deal, and then Lesnar and Angle left SD with nothing coming back to replace them.
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