I had one when I was a student in Boston - loved it. From Mental Floss:
What Ever Happened To Waterbeds?
For kids and adults alike, waterbeds used to be the coolest—until suddenly they weren’t. After a heyday in the late 1980s in which nearly one out of every four mattresses sold was a waterbed mattress, the industry dried up in the 1990s, leaving behind a sense of unfilled promise and thousands upon thousands of unsold vinyl shells. Today, waterbeds make up only a very small fraction of overall bed and mattress sales. Many home furnishing retailers won’t sell them, and some that do say it’s been years since they last closed a deal.
So what happened? Although they were most popular in that decade of boomboxes and acid-washed jeans, waterbeds had been gaining steam since the late 1960s, and in retrospect seem to have more substance to them than other notorious fads. How did our enthusiasm for sleeping atop gallons and gallons of all-natural H2O drain away so quickly?
Lots more at the site including some wonderfully cheezy advertisements from the 1980's. The article also goes into the history which dates back quite a long time.
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