Sadly, selling pre-made components and templates was never a sound business model, especially in the wake of AI. One thing I learned being on HN for so long and launching my own products is that a product is not a business. Don't conflate the two, at your peril.
Lots of people make great products but actually turning that into a business is fundamentally a different skill. It seems like Tailwind grew too fast, having 2 million ARR a few years ago and almost 10 employees (200k each is probably the all-in cost anyway for an employee if they're full time with benefits, so I suppose there was barely any profit), whereas they'd probably have been fine with running a Patreon like Evan You did for Vue, and cutting down the number of devs drastically, which I suppose is what they're doing now.
Definitely more than 200k per head. I remember seeing a job posting for Tailwind Labs for a (design?) engineer which was 250-300k TC.
Seems like it was an insanely profitable product, but a risky business.
Telerik, DevExpress, and a lot of other companies have made profitable businesses that have lasted well over a decade on that business premise. Selling solid and easy to integrate pre-made components has been a pretty good business for a while.
Tailwind had several times more than 2M / ARR at their peak.
It is a business. Envato was a billion dollar business in 2017. I agree that AI makes these kinds of businesses vulnerable, but it's overstepping to say that these things aren't businesses.