I think we are beyond the "theory" phase by now. Just yesterday I saw the president of a country advertising the products of a private company (Trump making an obvious marketing ploy for Tesla).
The failure relative to the original expectations seems to be that the other branches of government aren't fighting to retain their authority because the things they're being overridden to do align too well with what they would do themselves.
> the president of a country advertising the products of a private company
I think you're inventing new norms. It has never been unusual or interesting for the president of a country to do PR for some company in their country that has hit a rough patch (as long as this isn't a legal rough patch.)
Most of what our diplomats do is sell US products to other countries. They certainly have always played favorites.
> How can this ever be acceptable?
The horror. What if he says that he's going to Burger King?
How can this ever be acceptable?