The c64 was one of commodores best machines. I saw them still be sold around 1993 here in the UK. Some were reconditioned because the demand for them was still strong. If there were reliable upgrade kits like you can get for the Amiga I think I would do it for my C64.
They also delayed the introduction of the A1200 and A4000 until the A600 was ready and discovered that the A600 was a total flop anyway and should never have been introduced into the AGA lineup.
I don't recall the 600 ever been advertised in the AGA lineup. But your right there were a lot of poor decisions made at Commodore.