Commodore's mistakes were many. I'll list a few that contributed to their downfall.
1. They tried to replace the C64 during the height of it's sales with the Plus 4, which didn't have sprites, and, quite frankly, wasn't as good.
2. When they released the CDTV, they refused to allow games to be published for it (at first, anyway), and wouldn't let it be displayed near toys or games in retail outlets because they wanted people to think it was "serious".
3. Then they tried to replace the C64 with the C128. If they'd done this 2 years earlier, it might have worked, but they released the C128 a few months before releasing the A1000.
4. Having released the A500, and despite it's sales still being astronomical, Commodore tried to discontinue the C64. Public pressure forced them to bring it back, so they gave it a streamlined case.
5. They replaced the A500 with the A500+, at Christmas, without warning, and packaged it with games that wouldn't run on it. Mehdi Ali was CEO.
6. The following Christmas, they replaced the A500+ with the A600 (a downgrade, in my opinion), while advertising the A1200 loudly. While there were plenty of A600s, there weren't enough parts to supply the number of A1200s demand required, so people bought PCs instead, just in time for Doom. Mehdi Ali was still CEO.
The CD32 didn't have anything to do with it. It had barely been released by the time Commodore went into receivership on 28 April, 1994 (the day after my birthday). If it had been, it wouldn't have saved them. Mehdi Ali was still CEO.
If Commodore hadn't gone bankrupt, they planned to discontinue Amiga OS, and sell computers that ran Windows NT. They didn't respect their product, and they didn't respect their customers. That's why they went bankrupt.