Hello everyone,
the connection between Nuremberg and Prague has never been of any great importance, at least since the fall of the Berlin Wall. For a long time, there was one or more associations of the competitor DLB (now part of Netinera Germany). Their Alex trains ran between Nuremberg and Prague until at least the beginning of the last decade. This connection was discontinued, among other things, because of the mentioned IC bus line. It probably has an opportunity due to economic efficiency. DLB still operates the Prague - Munich connection on behalf of the Bavarian and Czech authorities. The trains connect to RE trains to and from Nuremberg in Schwandorf.
This will only change when the Nuremberg - Furth im Wald - Prague metropolitan railway is electrified. But that will take decades, as I know Germany.