Scion of Murgen (He/Him)
Ironically, TSR had in 1982 acquired a company which had famously good market research/customer feedback. Some interesting details of that company, and about how pre-Williams TSR treated them at the link below:Common, I don't doubt it. Not unethical? I mean, if you don't want to do business with folks around here, you can say that in public, but otherwise...
Overall, we have precious little evidence that TSR would have done any better under Gygax, given his dubious choices at the time.
It also bears mentioning that this was an age before the internet and relatively easy polling and customer feedback. Learning what the market was really like was extremely difficult, so making correct decisions was rather more luck than understanding, I expect. Neither Gygax nor Williams could be said to really know what they were doing with the new industry.