I was one of the five who voted to grant the planning application. The opportunity to open up a new route with the Stagecoach company shouldering the investment risk (they had already invested significant effort to get to the venture before the planning committee) has now been passed up.
Who can say if the venture would have been a success in the long run, but the risk to Council funds was low and the potential of providing a valuable service which would save travel time for many and relieve the congestion of the Forth Bridge bottleneck was very attractive.
Certainly the site was not ideal (further west would have reduced distances to busy parts of the city) and provision of park and ride facilities would have helped, but for me at least, the opportunity to improve the city's transport links for travellers was a considerable prize which far outweighed any down sides.
Stagecoach have said they will not appeal. I think the second and third bullet points at the head of their press release here sum up the key points rather well. Another report here.