While Capcom has made a lot of bad decisions, i don't think they're irredeemable. A lot of the Japanese companies even ones people think are doing great, are just not doing AS great as there western counterparts. Japanese gaming is suffering no matter how many people tend to like there games. They're games are just not appealing to alot of westerners at this point and Japanese gamers are leaning towards Handheld/Cell phone games from what i've read.
Like one other person said in this thread, with a bit of management restructuring, they can get out of this rut. But it won't be easy, especially when the Gamers of today are vastly different from the Gamers of when Japanese games were the fad that are western games now. The market is vastly different now with different tastes, and its no easy task dividing the wheat from that chaff while running a international gaming company with investors breathing down your neck trying to make a profit as fast as possible and with the budget of making a game being almost equal to a big budget movie. Its not as simple as "listening to fans" since fans have no monetary investment to gamble in with a lot of people's jobs on the line.