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What is the application process for U.S. citizenship/naturalization?
It is not a good deal for the U.S. government to allow people to stay in the U.S. as permanent residents and never become U.S. citizens. As a PR, you are entitled to live/work in the U.S. permanently but you are not obligated to perform jury duties, etc. It is privilege without obligation in your favor. This is why the U.S. is motivated to approve most N400 applications. If your N400 is denied due to administrative issues, then address these issues and re-apply or appeal. In this case you are still a U.S. citizen material and t simply want you to tie up some loose ends. On the other hand, if it’s denied due to t have determined you are not U.S. citizen material anymore, e.g. crimes, false info in your Green Card/ citizenship applications, then you can expect that t will follow up to revoke your Green Card too. As I said it’s a bad deal for the U.S. to allow you to live here permanently as an alien. A PR is like a U.S. citizen in training. If the government has determined t will never make you a citizen, there is no point to train you anymore.
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You would no longer be a N400 material but rather an alien who can be easily deported by the U.S. Department of Homeland Security. There are exceptions. If you apply for the U.S. Citizenship by Investment application, the federal government will allow you to live in the U.S. for up to ten years and collect an income tax as an exempt person. This will allow you to live here and work as a legal permanent resident after a one-year waiting period while you earn back your investment. It may seem unlikely but if you apply for a PR and you are admitted as a PR for ten years it does not matter how long you lived in the U.S. as a permanent resident anyway. It is important to note that if you are denied due to crimes you are not a citizen material anymore. The government is simply not obligated to.