I think their biggest mistake was trying to follow Microsoft into .Net instead of taking over the native desktop development niche. A native Delphi 8 with some VB6 import tools would have done wonders for them.
Their biggest mistakes were focusing on enterprise life cycle tools, selling the developer tools unit, creating an half hearted port of Delphi to GNU/Linux based on WINE, letting all the key developers leave the company.
All these together created the image that most of us should leave Delphi and C++ Builder while it was still affordable to do so.
