Well, just to step back, with the release of 2nd Edition, approximately half of their gaming audience left, refusing to buy 2nd Edition. There is still a very large original 1st Edition AD&D community going strong.
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Had anyone with business acumen, in my estimation, been running TSR at that time, when they saw half of their market disappear instead of trying to sell twice as many books to half as many people, the intelligent thing to have done would have been to come out with new releases of original AD&D, and tell the gamers “Hey, look, you can go either way now guys, we’ll support both of these marvelous lines,” and Dungeons and Dragons, too – why not?