UNIX and C only became widespread, because contrary to IBM, DEC, Wang, and many others, AT&T was forbidden to sell UNIX and they started offering it alongside source code for a symbolic price of $100, which was like being free given the prices of other systems.
In any case, that doesn't make C technically better than the alternatives outside AT&T walls, it was just cheaper to get hold of.
But IBM wasn't willing to sell its customers a PL/S compiler.
One reason was that (up until the OCO announcement in 1983) IBM gave its customers the PL/S source code, but not giving them a PL/S compiler discouraged customers from changing the source code, since they couldn't recompile it. Customer modifications had to be made in assembler, which was a lot harder to maintain.
Another reason was to make life harder for competing vendors selling IBM-compatible mainframes, such as Amdahl, Fujitsu and Hitachi.
(Probably it is way too late for this, but if IBM had been willing to publicly release PL/S tools back in the 1970s, or at least not use their lawyers to stop others from independently doing that, PL/S and its descendants could have become much more significant systems programming languages.)