the Amiga was just too damn friendly and powerful, it threatened their hold on power.
Not towards the end. It took about seven years for Commodore to make the first "real" improvement to their chipset, and AGA was far short of a stellar performer. Given how much faster the PC industry was improving, even back then, it's obvious that Commodore knew they had a good machine and felt no need to improve it. They were simply lazy and greedy, and released too little too late.
Once 3D accelerators hit the scene, PCs finally had their own "custom" chips, and no longer had to do everything with the CPU. The rest is history.
