Depends on what you call Atom, but if you mean Atom as it was released then absolutely no, it had exactly zero fighting chance. IIRC first Atoms were Pentium 4 or so fabricated on smaller process and resulting in lower power draw. The only meaningful use for early Atoms was crappy netbooks.
However, it was or could have been an important stepping stone for paving the road towards x86-based low power devices. Remember, it was also a time where linux-on-arm started booming. It could have been an alternative to ARM SoCs, but there were simply too little attractive offerings and Broadcom/Freescale/Ti effectively ate the market