The question before the A380 eas developed was which model would win: hub-and-spoke or direct flights. Airbus thoight it was hub and spoke, Boeing bet on direct flights. Hence the A380 and B777. Sure Airbus was proud to build something bigger than the B747. Now, both the 747 and the A380 are gone. The biggest blinder was to not have a proper cargo version of the A380. It did prompt the A350 and B787 so, both of which are great planes.
Was less a business decision and more of a EU pride and status endeavour. Death march to solidarity sort of thing.
The market changed drastically while the plane was being developed. Had the program started a few years earlier, it would have been, if not successful, at least profitable. And if it had started a few years later, it would have been canceled before completion.
Even if A380 is not profitable by itself, it's globally a good think to have done it for European industry. A lot of designs and ideas used for it have been reused in more recent planes.