IIRC when the Mondy was released in the UK it was hit quite badly with the 'bland' image ... kind of like here too.
Naturally sales there were higher than here because of the different ranges of cars, it didn't have to 'compete with itself' like the Contour/Taurus here either.
I imagine, from what I've read and seen, that the Mondeo survived much better there than here because it was a) given time and support and b) given a facelift to match what customers wanted.
Don't forget too, we were two whole years behind Europe in versions ... the 98 Contour is really a 96 Mondeo!
I personally feel that if Ford had not dropped it, the Contour would be very popular by now. The handling is really above par, which is something that grabs the interest of real drivers. It's a very comfortable vehicle, and capable ... a very well rounded car. It had potential here.
Consider that when the Focus came out, a lot of people were put off by the different styling, and lowly 4-banger. If Ford had not dropped the Contour, I would bet that between 2000-2002 Contour sales would have rocketed up because of that ... as long as price dropped a little. Naturally too, if development remained we would have had the factory 3.0 L version probably 2000+, and we'd all be salivating over upcoming the 2007 duratec 35 Tour!

Another thing that I think really helped the Mondeo was it's fleet sales. It helped exposure, it helped establish a contented driver-base too. I remember guys having these as company cars back in the UK, and then buying one for themselves. Personally I bought a Mondeo after spending some time spinning about in the company's Mondy. Ford USA should have really paid attention to this in the UK, as the Mondy was basically designed not only as a family car, but to compete as a 'rep-mobile' against the Vauxhall Cavalier.
I think one of the reasons that it became 'Grandmas grocery getter' is because the older buyer wanted a CAR. The younger market where all over the SUV and Minivan at the time. With a little perseverence, and dropping the 3.0l in the factory I would imagine that the Contour would have comparable sales to the Mazda6, although slightly higher as it's a "domestic". In effect, Ford USA didn't know how to market a European car ... they just added to the product line and that was it, expecting people faithfuly buy it simply because it was there.
One major assister in Ford UK sales ... BTCC Mondeo's. Granted not everynody watches it, but it definitely helped the reputation of the Mondy as a 'fun sports sedan' when it whipped the other makes. A very good bonus was having Nigel Mansell driving one for a season. The big name probably drew some interest to it too.