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I think instead of building a bike to win races, they built a bike they could use for marketing purposes and tried to force their riders win races with it.
They came into MotoGP with WSBK experience and fielded a reasonably competitive machine. 10+ years later they're further behind. That can only happen when you stop looking at what others are doing and stubbornly waste resources on a concept that isn't working.
It's unfortunate that when Melandri joined Ducati in 08 that they sent him to the shrink, rather than realise Casey was riding the wheels off it......