He-man was cancelled when it was really popular among boys and girls (ie. girls were buying He-man toys too). She-ra was created as its own entity, using the success of He-man, to go after the little girl market.
I can't help but think that by making She-ra so separate, and more powerful than He-man, that it alienated the base market (ie. He-man fans) that kept the show going.
I feel like they should have integrated She-ra more into the He-man cartoon and vice versa (ie. integrated He-man more into the She-ra cartoon), and made them essentially one.
In my opinion, they were better together than they were apart. They complemented each other so beautifully and perfectly.
I noticed that in the last season of She-ra they tried to include more cross-over shows, with Adam/He-man visiting Etheria, in order I think to draw back the He-man fans that had made the franchise successful in the first place. But it was really too late at that point. Mattel and Filmation had already decided to go back to marketing to boys again (ie. the ones who buy most of their toys).
How could you cancel He-man and She-ra, and move on to Bravestarr? I think they realized they made a mistake by snubbing the little boys who faithfully bought the He-man toys. For example Transformers and GI Joe have gone on still to this day because boys consistently and reliably buy those toys even into their teen and adult years.
I believe that it was bad marketing that killed the show. Sure artistically She-ra was a great piece of art, better probably than He-man. But by neglecting the business side (ie. who your loyal audience is----He-man fans), it lost traction.
Do you have any other ideas on how She-ra could have been saved from cancellation. I know hindsight is 20-20.
I just feel it's so tragic that the show was killed before the story could be completed with a happy ending (ie. Adora going back to Eternia to take her rightful place as Princess, after freeing Etheria from the Horde).