> When first released in 2001, Itanium's performance was disappointing compared to better-established RISC and CISC processors. - Wikipedia
* performance per dollar
* performance per watt
* highest single threaded performance
* lowest possible power draw
Itanium AFAIK improved neither of these, or it did so only for very narrow usecases. What Intel needed was either (a) an ARM competitor and/or (b) a processor with large vectors and a SIMT-like parallelisation model (i.e. a Tesla competitor). In both of these cases they didn't think twice before just throwing x86 at the problem until the pain goes away... which it never did.
Why trying to win people over on compatibility if they have to rewrite their software anyways for other reasons, especially after ARM took the largest market share in mobile?
It took a while to Intel to accept that the mobile-app providers won't invest the same effort in porting their apps from ARM to x86 given the market penetration, but I don't believe it was a suprising outcome to them.
Intel's problem is a case of optimization I think - their design teams have been optimizing towards producing a processor with an effective power budget of whatever the cooler could dissipate, rather than optimizing for low power, and that's a very different task.
There's no one processor that will fit all workloads.