In truth, that's not the only issue users created. The other was a lockdown of the computer to not much better than the originally released A1000. People refused to upgrade. This wasn't new back in those days. In reality it started with the Atari 2600 VCS.
When you had a massively popular system people bought it, but its own success hampered future development since people didnt want to give up compatability with their purchased software base (forget that you can always have kept the old system when buying a new one, but I think most people had to sell the old system to either have the money to get a new one or to maximize their purchase with the addition of peripherals and software).
The problem was seen again with the Commodore 64. Even the Amigas release was gauged by Commodore 64 owners by wether or not it could play C64 games. The 128 had to be designed with a C64 inside it for compatability to even be considered following the user responce to the TED releases.
Then along comes the Amiga 500. WB1.3, 1MB RAM, floppy drive was the Amiga norm even after the release of the 1200. If an OS 2.x or later on AGA only game was released, these users would complain. This tied down most Amiga development to the lowest common denomonator even though there were more capable machines out there and allowed other manufacturers with less of a legacy to deal with to leapfrog over Amiga like they had with the 2600 and C64 in the past.
CD32 would have been a huge help with piracy back then if enough had gotten out. You probably would have seen development for it first, with a company making their money on the CD32 release (hard to copy when CD burners weren't common and media was expensive) then release to the disk based 1200/4000 later. That would have also helped the adoption of CD-ROMs on 1200s for users who didnt want to wait.