About the time Sussman and company were getting back their first silicon, Intel was shipping the 8086 and 8088, which could, for example, address a whopping megabyte of memory.
Sussman and company did one or two generations of silicon, but from what I've heard the microcode one or the latter was flawed and never really worked. They simply didn't have the resources to sufficiently simulate it before committing to silicon (I'm told there was a bit of arrogance involved as well, which I believe).
Intel won and continues to win in part because of success reinforcing success, keeping their eyes on the ball, and massive investments. Process (fab lines), design, simulation, support for hardware developers (said to be a critical factor in many 808x design wins over the 68000), etc. etc. etc.
I've thought of paths that might have allowed custom Lisp hardware to survive, but they're in part 20/20 hindsight (people really should have believed Moore's Law, and made a minimum gates RISC chip ASAP), in part require a quality of management that none of these MIT based efforts ever had, and almost certainly in part wishful thinking (non-recurring engineering (NRE) costs were a killer, especially combined with the need to make profits vs. that keeping the ecosystem small by shipping small numbers of units).
Send me back in time with a zillion dollar budget and who knows? Short of that, as agumonkey says, what's done is done. Me, I want to see tagged architectures return (to enforce dynamic typing and make math fast by tagging each word in memory; also has potential for security, and of course helping GC).