When you think about it at another level, there's not enough difference between a decent Lisp compiler producing 68K instructions for the Lisp primivites on the Sun workstation, and the microcode in the Lisp machine running micro-instructions implementing Lisp primitives. So the commodity hardware won out, as it usually does.
Uh, the machine's architectures were probably designed to be more amenable to Lisp-esque features (e.g., garbage collection, tagged types at runtime, native pair operations, etc); I suspect the machines didn't execute Lisp directly for the same reason that an x86 doesn't execute C directly...
These machines had hardware support for various primitive
Lisp operations (data type testing, CDR coding) and also
hardware support for incremental garbage collection. They
ran large Lisp programs very efficiently.http://www.bitsavers.org/pdf/mit/cons/TheLispMachine_Nov74.p...
The pointer/register format was very LISP-friendly, but the actual instructions are much more conventional. The trick is that instead of having to test the tag bits with separate instructions, the "load" instruction equivalent does it in hardware.