ARM had the great advantage of running on 32 bit wide memory (and making very good use of it) - that's partly a matter of (historical) timing, the 68k would have been much less desirable if that was the story. Even 16 bits wide felt a bit high-end, needing pairs of ROMs and sets of 16 DRAMs. Which is why the 68008 had a certain amount of appeal, early on.
I think the other problem is that a CISC machine is difficult to iterate on to chase ever-higher performance: eventually, at huge effort, Intel managed to do that, but it was an exceptional case. They tried several times to ditch x86 and start again with something simpler and more scalable. So, I think, the 68k line couldn't keep up with performance expectations. For embedded applications, MIPS was very popular for a while, and eventually ARM took over as the obvious choice.
It's an interesting question, perhaps, if WDC had never got started and not offered the '816, would it make any difference to us here? There were several other manufacturers of 6502 besides Commodore/MOS, and they had CMOS versions. And we know from much later work by many other individual efforts (21 HDL cores linked
here) that reimplementing a 6502 in an HDL is a practical proposition, which means any number of companies could have written their own and used it or licensed it for custom or semicustom chips.
That is, the great popularity of 6502-based micros in the past, and the simple nature of the CPU, means we might still have a keen community of enthusiasts even without WDC.