Tanknetter hit it with range/load capability. The Navy has always been reluctant to adopt the Osprey primarily due to the costs and "availability rate" of the V-22 anyway. Also, on-board maintenance presents a multitude of problems.
Do you know the range/load capability of the V-22? The C-2A could carry about 10,000 lbs. of cargo or 26 passengers for about 1000 miles doing about 280 Knots.
I thought the V-22 folded up pretty small, but I just don't know that much about it.
Another issue for the V-22 is the heat from the exhaust when the propellers are rotated upwards. Apparently, this has caused difficulties when landing or taking off, causing near melting conditions on the deck superstructure.
You don’t hear about this problem these days. Maybe they have found a way to deal with it.