I think Apple will have trouble course-correcting because there currently isn’t a good OS for sale. Why improve in terms of quality, if there isn’t any competition?

Weirdly, I think they might be smarter than us. Despite being superficially uninterested in hardware, the general public seems to buy hardware, and then just use whatever OS comes on it. Apple seems to have aligned with this by easing up on software quality a bit and obtaining a reasonable (although not incontestable) claim at being the best hardware company with their M-series chips.