See also: Disneyland. People really like Disneyland, and it's profitable for Disney, but it's also one enormous advertisement for their products.
The feature film animation studio was sold to Jobs as a way to market their technology, in order to sell more licenses and create the market which would want their (still theoretical) dedicated GPU hardware.
Turns out the better play was making an animation studio that would rival and then eventually demolish and replace (via merger and integration) the iconic hand-drawn Disney animation.
I suspect the heads of the animation studio within Pixar knew what they were doing though.