RIP Amiga
The Amiga went bust due to a combination of the rise of the cheap "Generic" PC (taking away the Hobbyist users) and the games console (taking away the gamers). It is possible the format could have survived in a niche in much the same way as Macs do even today. However, since a large number of Mac users are "Anything buy Microsoft" types it's equally possible that it would have split the "We Hate Bill" contingent in half - making both sides unprofitable and given Microsoft an even greater monopoly than they enjoy today.
Some effective management would have helped as well. They didn't invest in the format at all and let the Amiga become dated, cheap and complicated (compared to a Megadrive!) to use. The AGA chipset was a fine idea and the slightly faster processors were welcome (but not fast enough to make a major difference), but not given them a hard disk when all PCs had them, and failing to upgrade the entire chipset to keep it as ahead of the game as it was on release was unforgivable - if they wanted to keep the company alive.
My guess (and it is only a guess) is that someone worked out that they could either plough huge resources into CBM for potentially no returns (if the enhanced format didn't catch on). Or they could just push what they had already as far as they could to get maximum returns on existing investment, before folding the whole thing up as a bad job when it stopped selling. The end result for the format would be the same - it would just be a question of whether they bankrupted themselves in the process.
When you consider how cheap PCs and Playstations are these days - it was probably the smart thing to do. What they really, really should have done is stick the Amiga brand on a range of games-orientated PCs at reasonable prices for that they had in them. Then built these as cheap as possible, and sold them with bundled games and whatnot (much as they did with the A500), aimed at the consumer!
Sad, but true.