Intel certainly tried to make up for their x86 monstrosity several times. They got smarter and smarter about how they did so in terms of market acceptance. A combination of engineering mistakes and foolish market choices (imho) made them pay. As you said, they learned to give customers the insecure garbage they wanted or risk extremely large losses. Links below for those interested in the specifics of their better work.
Intel i432 Capability System http://homes.cs.washington.edu/~levy/capabook/Chapter9.pdf
Intel/Siemens BiiN System (w/ i960MX manual) https://en.wikipedia.org/wiki/BiiN
Itanium Security Features http://www.intel.com/content/dam/www/public/us/en/documents/...
There are new projects copying some of the lessons learned such as Sandia Secure Processor (SSP/Score), SAFE (crash-safe.org), CHERI (Cambridge), and quite a number of academic/proprietary works. I suggested on Schneier's blog we could do what Geer thought was impossible by straight up copying the old NonStop architecture (published in detail) while swapping legacy CPU's for security-enhanced variants like above w/ extra I/O security. Five 9's, linear scaling, immunity to most attacks, and support for higher-level languages. I'll take 10! In theory, it might get down to a few grand a unit for each logical processor with careful management of development costs & sacrificing multicore for first generation. Be a nice root of trust for other systems security, administration, and recovery needs.
[1] http://homes.cs.washington.edu/~levy/capabook/index.html
[2] https://www.schneier.com/blog/archives/2014/04/dan_geer_on_h...
The Burroughs B5000 blew my mind when I read about it after Alan Kay mentioned it. To think that it used ALGOL as its machine language (among other things) in 1961 makes you want to weep when you see things like MMX and SSE instructions being the hot thing of the present.