Maybe, than again Red Hat was bought for an astronomical some by IBM so they were doing something right. Ubuntu still looks like it is doing well. I do not know how Suse is doing but they still exist.
So I think commercial foss is not a failure but probably difficult to maintain.
ThFair enough most are free as in free beer and free as in freedom. But that is also the reason why open source is so badly funded. I donate but that is nowhere near enough. I am not Valve, Google, Microsoft, Amazon, etc… Do not have the funds to hire devs.