Why geared turbines displaced turbo-electric drive

Were there good reasons for the US Navy to abandon turbo-electric drive?

Yes. Geared steam turbines delivered more power per ton or pound in this period.

The power-to-weight ratio gave geared steam turbines a practical advantage over turbo-electric machinery. A displacement limit made that difference especially difficult to ignore. Continued development in a fleet without those limits is a separate possibility. Further investment might have narrowed the gap, while the contemporary advantage of geared turbines remains clear.