The thing with AMD64 is that now there is this myth that there was no other alternative than keeping up with x86, and Itanium redesigns for some magical reason were impossible.
Other than those redesigns never happened, because AMD64 made economic invalid to pursue them.
I'll grant that it seemed like a decent idea at the time, but there was enough risk there that I can only describe Intel's all-in stance on Itanium to have been a blunder.
(There's a worthwhile distinction to be made between a blunder and a mistake. Mistakes are calculated risks that don't pan out, whereas a blunders is something that should have been obvious that it would go poorly when the decision was made. Losing your savings in the stock market from a surprise dip is a mistake. Losing your savings by betting it all on 14 in Vegas is a blunder. Similarly, the design of Itanium was a mistake. Betting the company on it was a blunder.)
One can imagine an evolution of IA64 that conceded microarchitectural complexity to allow adoption of a more compact instruction format with dependency tags rather than fixed bundle width, resulting in something more like an evolution of P6 with a different face, better x86 compatibility, and still ISA uniformity with the big iron. Or an evolution that involved buying Transmeta and adding IA64 support to that.
Obviously Intel didn't end up doing any of these things, probably because distribution strength and process superiority allowed them to do less and still post strong quarterly numbers. I'm not even sure if it was a blunder given the local incentives of the people who worked there at the time.