AROS obviously won't work for them from a licence point of view so a version of Linux, named Commodore OS, is not necessarily a bad idea, I think.
Apple did it and did it well. Personally, there may be merit to having a version of linux named after a popular computer. When you think about it, if Apple said they were just running linux (I know it isn't but follow me for a sec) would it have had the same impact? I would say probably not. If they market it as Commodore OS and not push the fact it is linux and focus on the name, it just may work.
As the CTO said in the forum, the hard core Amiga crowd isn't their market, I can see why. They are bringing an old name back to link with Linux. Nothing more nothing less.