No they're not failing over all at all. They're just failing at web stuff (which they keep trying at). I wouldn't change a thing with their hardware business, and as a result I wouldn't change apple.com. I would change me.com though, because it's not a success by any definition of the term.
Also, my point was not about whether a site is amateur or professionally done. It's whether the focus is on amateur or professional content. Apple is very good at the latter and not so much at the former which is why they have so much trouble with the web.