Intel has had a few bad years, but frankly I feel like they could fall a lot lower. They aren't as down bad as AMD was during the Bulldozer years, or Apple during the PowerPC years, or even Samsung's early Exynos chipsets. The absolute worst thing they've done in the past 5 years was fab on TSMC silicon, which half the industry is guilty of at this point.
You can absolutely shoot your feet off trying to modernize too quickly. Intel will be the laughingstock if 18A never makes it to market and their CPU designs start losing in earnest to their competitors. But right now, in a relative sense, Intel isn't even down for the count.
Intel has failed pretty badly IMO. Fabbing at TSMC might actually have been a good idea, except that every other component of arrow like is problematic. Huge tile to tile latencies, special chiplets that are not reusable in any other design, removal of hyperthreading, etc etc. Intel’s last gen CPU is in general faster than the new gen due to all the various issues.
And that’s just the current product! The last two gens are unreliable, quickly killing themselves with too high voltage and causing endless BSODs.
The culture and methods of ex-Intel people at the management level is telling as well, from my experiences at my last job at least.
(My opinions are my own, not my current employers & a lot of ex-Intel people are awesome!)