They could have won the mobile market, at the cost of severely hurting their desktop market. In a way, Intel was scared of their atom being "too good". They had to suck, because the major premium they earn is selling i3/i5/i7/xeon, a low end x86 chip that performs well would have earned them good parts of the mobile market at low margin, and lost sales in the desktop market at high margin.

Already the cheap end x86 notebooks were ditching i3 for atom, and being "good enough".