That works/worked* in the car industry where a car that's twenty five years old isn't typically much less advanced than one twenty years old. But in our industry?
Commodore's problem was more that they took an age to substantially improve the Amiga and make those improvements available. The A500 was more or less an A1000 in a keyboard case and was still being sold as one of TWO Amiga models five years later. And the A2000, the other model, wasn't more powerful than the A1000 (or A500), it was just more expandable. In the same year they finally relented and released the A3000, a 32 bit Amiga, but priced it way out of consideration for most people.
None of this was the engineers' fault it should be pointed out. While it took a while to come up with a better base chipset to replace OCS/ECS, the engineers were still belting out some fantastic designs, most of which were squished by upper management. Commodore Management's response to the increasing obsolescence of their low end model wasn't to replace it with something better, it was to replace it, at the same price, with the A600, a machine that was worse in almost every respect (well, it did have an IDE interface...), and which had been designed as a replacement for the Commodore 64.
Had the A3000 replaced the A2000 in 1990, with a similar upgrade given to the A500, I think Commodore might have stood a chance.
* OK, there's a reason I put 20 years there and "worked" - the car industry is genuinely going through a development phase which is nice to see.