In thinking more about this, it really shows the mess that Commodore management was at this time. The 128 and C65 were essentially the same, with an attempt at keeping C64 compatibility that was really poorly done (having a completely separate C64 mode) and held the new machine back. C16 and Plus 4 that brought nothing new to the table. And the incredible Amiga, which they should have placed all their chips in on, but didn't. Also, by this time, their initial "business" lead with the PET was completely gone and wasted. IBM had eaten their lunch in all respects at this moment.
As with many computer/game companies at this time, they had a real lack of focus and too many irons in the fire.