I am with you on this. One of the biggest limitations of the UK automotive industry was the incremental approach which kept going on for too long. In the automotive industry, complete model revamps occur every 5-7 years, with intermediate incremental changes taking place every 2-3 years. In the traditional UK bike industry, complete model revamps occured every 20th year - at best, and incremental upgrades were often so small that they were hardly noticeable. A further limiting factor was that managers trusted incompetent in-house knowledge too much. Also, project management seems to have been very loose, allowing developments to drag over several years. Maybe the general productivity was feeble and the efforts spiritless? When the results were finally tested, too often the outcome was deemed unsatisfactorily or even useless and the project would be terminated.
I remember AMC's P10 disaster, where one designer's wrong ideas and stubborness cost the company a fortune and probably sealed the company's fate. An early review by external experts could have brought the project on the right track. The same thing happened with the N-V Cosworth project. With incompetent engineers and poor project management, even huge capital investments won't help.
The Commando project seems to be a deviation from the normal outcome, maybe thanks to strict project management by Dr. Bauer. I think it's a narrative of british bike industry that a german had to be brought in to help AMC/N-V to succeed with this project.