Hi awk,
I don't think the Intel folks are brain dead. I think they are stuck. The world just moved them onto a really difficult path.
They thought about entering MS' space and were slapped down.
They are now trying to figure how to compete with ARM. But the ARM model is very difficult to compete with. They decided to try to compete in the mobile space but have not made much headway yet. They decided to try to get themselves superiority via security but they have run up against some real difficulties again. Now they find ARM is encroaching into Windows-world. They must be very scared.
The problem is this: their superiority was derived from a PC-centric world. They are trying to figure how to maintain that superiority in an internet-centric world, but the internet-centric world favours cooperative architectures rather than monopolies.
Difficult problem.