I'm not so sure about where Intel will be in 5 years, and I agree there are quite a few markets where they seem to be unable to properly compete and even sometime end up creating their own opponent (not letting nVidia enter the x86 market didn't go as well as they could have hoped ...).

But the fight against ARM is even worse, it's Intel punching itself in the face.

That's what invariably happens to a public company which has complete control on a very high margin market, sees an opponent coming, and figures out a solution to stop that opponent with the downside being a requirement to slash their margins. In a stock market / short term profit economy, for a public company, keeping the margins as high as they can for a few more years always seem to be the choice, even if it always end up pushing them out.

And that's why Atom processors remained utterly incapable of competing: if they did become good, then they would eat into the upper Intel lines all the way up to the i3, and that's a lot of short term money lost.

So, yeah, if that ends up pushing Intel on the way out, it will be self inflicted damage, not technical incompetence.