Not sure whether this is the question to me... Personally, I consider Itanium a major failure (both engineering and marketing) and one of most important causes of Intel troubles (maybe even single most one).
How is it a failure because it didn't get into the SOHO market like everyone in their dog thinks Intel wanted to do? Or maybe because its performance comes from compilers? Or the sheer size of the processor and cost to manufacture?
Seriously look at the whole picture and not the tunnel vision that tends to go with our type of thing. The processor is very much a work in progress it's performance numbers prove that it can deliver, but it requires very heavy compiler usage and smart programming to get that performance.
Those are the draw backs for the current form of the Itanium and yes that does suck in the grand scheme of things but as I said its a work in progress and while it appears to be a failure because it hasn’t gotten into the SOHO market doesn't mean its a failure, just a work in progress.
Regardless of any current thoughts on the matter Mitosis appears to be the technologies near term goal. Whether or not it will live up to the performance that Intel hopes it will attain is up in the air or more realistically in a Intel development lab getting worked on.
Anyway, back then, the Intel strategy was to occupy high-end by Itanium. They simply were not interested developing x86 CPU with that would compete with Itanium.
X86 doesn't hold a candle to IA-64 in performance so there would never be a situation where IA-64 would be competing with x86 for performance or market share.
The plan however failed because in-order architectures, explicit parallel or not, cannot really compete with out-of-order ones, so Itanium was not as good server CPU as they wished.
Implementation aside OOO processors vs. EPIC aren’t something to consider because as I stated each implementation is vastly different.
As for the "not as good server CPU" comment, last I checked when any processor runs specifically compiled code they generally run exceptionally well this does not change for the Itanium which in the current 9000 series holds it own against the Power, Sparc, Xeon, or Opteron for that matter. It's just unfortunate for Intel IA-64 requires heavy compiler usage to produce those jaw dropping numbers.