The problem they all had in the early 90's, regardless of the platform, was what to use CD for. They suddenly had this huge (for the time) 650MB of storage on a single disc, but until that point most games and software had been fitting on 2-4 floppy disks, with a few games needing a few more. Hardly large enough to justify a 650MB storage size.
Obviously the larger multidisc games like BASS could benefit from this as it could mean no more disk swapping during gameplay. Plus the ability to include CD quality audio tracks during the gameplay. But that still didn't fill the disc up.
It wasn't just Commodore with the CDTV and then the CD32 that struggled with utilising CD as a storage medium. It was the whole industry and every platform that tried to use it. Even the PC market struggled to sell CD drives to begin with. Using the buzz word "multimedia PC" to try and prove a PC with a soundcard, graphics card and CD-drive were the future that you had to own.
It wasn't really until the Playstation that developers really got an idea how to use the storage of a CD properly and usefully, and even later with games like Final Fantasy 7 that we really see what a CD based system can utilise CDs to achieve.