Intel Corp (INTC)

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This strategy won't work because Intel cannot execute in delivering architecturally capable products to the market in a consistent, predictable fashion.

They just seem to have no ability to read what the market wants. And, for some reason, they move very slowly. These folks just can't spin chips & derivatives at anywhere near the clip that MediaTek/Qualcomm can.

Atom also has more raw development potential

Yes, because Intel has allowed the current Atoms to lapse into mediocrity just as it did with the previous Atom by not aggressively iterating it each year. Airomont is ~1/2 the speed of an A72 or a Kryo (and this is with Airmont having the advantage of a "superior" process), so yes, when you are this slow there is of course "more raw development potential."

But by the time Intel gets Atom to A72/Kryo performance levels (maybe 10nm Atom core?), the ARM guys will have pushed even further.

The ARM camp is going for the jugular trying to design Core-class CPUs. Intel's only real hope at this point if it wants into the high end mobile game is to build smartphone/tablet SoCs (not things like the MCM Broadwell-Y/Skylake-Y) based on the Core architecture.