Procedure For Cloning Commerce Collection Taxonomy View Page?
I think you need a view based on your products filtered to your taxonomy term. You should be able to do this with the views UI more easily than the way you're attempting to programatically. 

I think you're misunderstand the theme folder altogether and how drupal presents the page that is rendered in the browser. The theme folder has mark up, images, and CSS that defines how your whole site is displayed, the views are generated, not stored as discrete files in your theme folder.

If you're on the kickstart demo store. Go to Product Categories, delete the defaults, add your own 'categories', and that should change the demo store to reflect your own set up. You should play with a default drupal set up to get familiar