Well if you call struggling by losing only to 4090 outright (in both raster and RT), then id say AMD is not doing so bad at 4080 performance.
Not to mention, that the sole 4090 users are either prosumers like content creators, broke 3D design folks, that are unable to buy themselves Pro line GPUs, the AI freaks, that want to enter that noncence bubble at all costs, and the "1337" "gamur" crowd, with more money than intelligence, just to show off their soapy upscaled 4K DLSS screenshots, somewhere on forums and social network. The most of people do not even look at that area, enjoying their "modest" gaming with 4080/7090XTX as most. Most people look forward to to 7800XT/4070 Super, and the sales just show that.
So I don't see any trouble leaving that tiny segment for Ultra rich kids and selfish menchildren, considering that among all premium products, AMD has more profits from enterprise anyway. No point for them to sell many premium GPU products if they can sell WS cards instead of top tier "gamer" counterparts, for people that needs them, ad will gladly pay that premium. And gamers can keep up with something akin to what being used in consoles (RX6700), anyway.
But most of gamer segment come from low/mid end GPUs anyway. No point to invest in something, that is basically a placeholder. And even if there won't be any successor as RDNA5, AMD can live with just such low cost cards, until they feel like they are able to release something top. They did it with RX580, Radeon VII (Vega II), RX5700, until they make RX6800XT/RX6900, that sold like the hot cakes, and was basically on par with nVidia rivals.
Thus, there's absolutely no point into putting the expensive VRAM, in such temporary and low cost. It's more reasonable to use newest GDDR7 along with breakthrough solutions that may, or not be be RDNA5.
As of Intel. I can't say they are absolutely hopeless. As it's not guaranteed that they will make the great achievements with Battlemage. However, as much as I don't like intel, I must admit, they have already made a significant progress in the GPU division. I dare to say, even bigger than AMD did for a decade, but instead within of couple of years. Of course, they have miles bigger R&D budget, but still. From what I've seen and read, Intels compression/decoders are miles better than AMD, even on lowest end cards. Their RTRT is also better. And this considering, Intel is on huge decline, and selling their assets left and right. AMD on the other hand, is blooming, but still reclutant to invest in their consumer areas like Radeon, because they went all-in on Enterprise, because it doesn't rely heavilly on AMD drivers, and they they don't need the streaming/decoding capabilities anyway. So AMD can invest less, while having more. At this point AMD is seems to be even greedier, than Nvidia. They lacking at every area, but still get the hubris to ask the premium for absent features/options.