I imagine Thiel having concentrated on hi fi product refinement rather than the tremendous investments and demands of addressing home theater. Not only would the state of the art have been stretched, but the internal workings of the company would have been more manageable.
I sincerely believe Jim Thiel made some of the best drivers out there. IMO, only more recent and far more expensive offerings from Vandersteen, TAD, and Vivid are appreciably superior. In your alternate universe, a CS7.2 or CS3.7 with SOTA passive parts and, maybe, Wilson-like budget on cabinet materials would have elevated those models from outstanding to cutting edge.
I hope to some day hear the CS5, all the more if it has received your upgrades. IME, the highest quality bass is produced by a sealed box. Eg, the 30 year old Avalon Ascent has the best bass definition I’ve heard. Well, probably matched by the Vandy 7 which also has SOTA bass extension.