This is actually the trajectory of both Apple News and iAd before it, which is what started out providing the ad service for Apple News. Apple would like to do a high quality solution, and then keeps relaxing their standards when there's not enough buy-in from the content providers. They were forced to allow the non-curated news formats to have sufficient content.
It'd be a big one-time lift; and of course there'd be annoying constant breakage to fix as sites update; but News.app could always fall back to rendering the original article URL if the News backend service's currently-deployed parser-transformer for a given site failed on the given article. It's make things no worse and often better than they are today.
In this specific example there is a very big difference between producing a format for use in a first-party app vs trying to replace standards for content used across the web.
I mean... sure it could have? There could have been an independent "AMP Foundation" that forked the standard away from Google and owned the evolution of it from then on. Like how SPDY was forked away from Google ownership into HTTP2.
They kept opening it more and more but by then it was too late.