But to claim that those products - say, e.g. top charting hit songs in music - possess some better quality than the rest, would be akin to arguing that every single person's preferences are equally valid and good.
In capitalistic world, the market is the God waiting to be pleased. Profits, is equal to quality,
most of the time.
Ultimately, in this world, It doesn't matter if a product do something well in eye of niche, what matter is that it does a thing good (or good enough) for a lot more people. Thus, more sales reflect the product capability to not only to meet the preferences, but to
satisfy those preferences. And more importantly, the sales number are enough to
sustain its developer.
Colony Ship not only unable to generate enough profits from the specific market they targeted (controlled variable), they're unable to pull enough interest from general public (uncontrolled variable). It's not on any "Best gaming chart" (akin to hit songs), meaning there isn't any qualities that satisfy general public preferences that matters.
Arcanum, failed on profit angle but considered a cult classic,
there is an argument to be made that Arcanum is better in some specific way that no modern cRPG has managed to re-created. All of these discussion would be
subjective.
Objectively it's a failure. Not many people remembered it. But it might still be remembered on certain demographic's zeitgeist, such as cRPG player.