I think the reality is that in order for TSR to have remained profitable, they would have had to downsize, limit themselves to only a handful of actual D&D projects, and not overload their novel line.
That would most likely mean no products like Night Below, Al Qadim, Ruins of the Underdark, etc. And novels would have been limited to Weiss&Hickman, Greenwood, and Salvatore (assuming TSR would have treated them better). Maybe Denning, Grubb and Lowder as well. No other books or authors.
Basically, we got a lot of products, many of them we enjoyed, at the expense of the health of the company.