CHADBOGA, you are spot on that Intel is not sandbagging -- believe it or not, this is the best they can do.
The problem is that their process technology R&D organization really blew it in terms of bringing new mfg technologies to market at good yields, and this completely blew up the product pipeline. While they continue to bloviate about their "3 year lead in logic density," the reality is that their product roadmap depended on 10nm being ready for mass production at good costs at the end of 2015 and then at the end of 2016, both of which did not happen.
Even 14nm to this day is not where it's supposed to be in terms of yields/cost.
The blame, IMHO, lies with the manufacturing organization.
Right now, Murthy is doing what he can to clean it up by working closely with the mfg side of the house and telling them what he needs and defining/executing towards reasonable, low-risk/high reward projects like more cores for mainstream (Coffee Lake) and annual process performance improvements (14nm+, 14nm++). But Murthy, capable as he is, can't fix this overnight.
Going forward, now that Intel has accepted the reality that it will be on 10nm, especially in PCs, for years and years, I think (hope?) we will see much better/interesting products.