The trapdoor expansion wasn't as good as the A500's, PCMCIA addons were expensive, and Commodore were flogging a dead chipset by that point. They needed invest in R&D and come up with something that could play Wolfenstein and Doom instead of earning money for old rope.
Also the caps were nasty and cheap and if you turn one on today and it's still working then you should probably immediately turn it off and get it recapped.