High-end home audio seems a lot like high-end automobiles to me. There are vehicles for the masses, and vehicles for the passionate. Similarly, there are audio components for the masses, and others for the passionate.
I've owned Lotus, BMW, Porsche, and Aston Martin, among many others. Lotus was a "mad scientist" company that absolutely advanced the state of the art and pioneered innovations that trickled down to typical daily drivers, and many other high-end car companies also did so.
On the subject of literal "garage industries," Aston Martin is a classic example of a company that was driven by irrational passion, illogical processes, irresponsible management, and unsustainable costs. This resulted in the company going bankrupt several times, and vehicle purchase prices that make most people roll their eyes. The owners of the company and the owners of the cars share the pains of this approach, but many are willing to pay them. I know my Aston Martin DB9 extremely well, performing both its routine maintenance and extraordinary repairs myself, and doing so has brought me closer to those who first dreamt then designed and finally hand-built the car. I cannot work on the car without (and I know this sounds silly) feeling the presence of those who made it happen. And when I drive it (about 4,000 miles a year), I am just so happy. It is not transportation...it is transport.
The closest car I had to it on paper was my Porsche 928 S4, at about one-fourth the cost, and from a profitable company. I liked that car a lot, but it didn't touch my soul the way my Aston does.
I suspect that many high-end audio companies are similar. Someone has a dream, and in dreams we can sometimes fly. But when we wake up, the compromises required to compete in a commercial mass-market world often seem too painful, and the refusal to make those compromises often results in extreme prices and low financial sustainability.