I think one problem is that Velocette were always on the margin of viability and like Norton spent a huge amount on the racing machines. Although this meant that much good stuff did percolate down to the bread and butter bikes it also had the result of limiting investment. The Velo clutch, for example is just a refined / bodged (take your pick) of the original which was fitted to a lowly 2 stroke.
The persistence in running the final drive outside the primary, although having some racing advantage in giving a narrow stiff crankcase and ease in changing final drive ratios, was not that useful to the road rider and indeed given the number of people unable to read and understand the manual led to incessant problems with clutch adjustment. You only have to join the Velo "forum" to see a lot of new owners struggling.....
https://velocette.groups.io/g/main/topics