For instance, the white earbuds, whatever you may think of them — had a pretty important role in popularizing the iPod, as they stood out from the rest. iPod users, in spite of having the actual devices hidden in their pockets, could be identified from afar (among users of other unidentifiable brands of mp3 players). Look at the iPod commercials with the black silhouette people wearing white earbuds. I'd say Apple's earbuds, regardless of audio quality, has been a phenomenal success. They're not failures by any stretch of the imagination. You may think they suck, and you may be right, but they're not a failure.
About the same thing goes for iTunes. You may think it suck, and you might be right. But it's not a failure. It is a resounding success. iTunes has become the leader in music organization (second only to manual "organization" in ad-hoc folders). iTunes has been essential to making the organization, synchronization and purchasing of music an overall smooth experience.
While I agree with most of the points brought forth; iTunes is becoming increasingly bloated, being responsible for many things that has absolutely nothing to do with music — it maintaining that role has also made it easier for users already familiar with iTunes to start buying apps for the iPhone, synchronizing their calendar and contacts, etc.
I agree iTunes needs a bit of an overhaul, everything not related to music organization should be moved into separate apps dedicated to just doing that. So yeah, iTunes sucks. But it is not a failure — it is an enormous success.
Having the opinion that something sucks does not magically make it a failure.