Jobs came back when Apple was in the dumps and turned it around. Key was cancelling contracts that allowed other manufacturers to manufacture clone computers that ran MacOS. Jobs also paired down its own product offerings; smart due to Apple's poor health.
Despite giving customers more choices today, Apple is extremely successful, likely far beyond Jobs' dreams, and far far from a company that's failing.
Just because a strategy worked to partially help turn a failing Apple around in the mid-1990s, does not mean that Apple today with more product choices at a range of price points to attract a wider audience, is a bad thing.