Nope, that's not what killed it. Ethernet was just as bad before hubs and then switching came along -- even with hubs, one bad ethernet card could take down the whole broadcast domain, and did with some frequency. And with thinnet wiring (coax to the younglings) all it took was one marginal connector, anywhere in the loop, to kill the whole network. Don't even get me started on thicknet.
What killed it was money. Ethernet became very cheap to implement. Once everything moved to a star topology (hubs, then switches) the advantages of Token Ring were not worth the additional cost. Ethernet benefitted from being able to advertise higher bandwidths (10mbps, then 100mbps, vs. TR's 4/16 then, too late, 100) -- the perception was, "why would I want 16mbps token ring when I could have 100Mbps ethernet for less money?" Ethernet wasn't really any faster, and was often slower due to collisions, but everybody just looked at the total bandwidth. Once switch ports got cheap, collisions were no longer an issue and Token Rings fate was sealed.
Of course, Arcnet had a star topology long before Ethernet or Token Ring. But it too suffered from low nominal bandwidth.