They are not bankrupt, but what they are doing is shattering their core userbase into many different groups. This is not the same as 1st ed vs 2nd ed players, or the players (like me) who still play 2nd and 3e.
Hasbro/WotC completely dropped support for their OGL that they developed with 3rd edition, but many people still use that. There are many other new, creative RPGs that can easily give D&D a run for its money, and the old powerhouses like Palladium are still going strong.
It's funny that everything you mention about 4e is in the sense of a dumbing-down or simplifying. WotC has always been obsessed with that concept but it is just not in sync with reality. Gamers love complexity and they want a system that has rich options. Why do you think WotCs attempts to turn RPGs into a kids oversimplified boardgame always fail, and the system inevitable ends up becoming more and more complex?
As for the actual content, well WotC will never be able to top the greats of 2nd edition; that is when there was true creative talent in the AD&D universe, with settings like Planescape, Dark Sun and Spelljammer as well as the more "traditional" fantasy settings on Toril, Krynn and Greyhawk. WotC has just been living off those great masterminds and reprinting books of lists (feats, skills, equipment, classes, whatever), not creating anything of its own.