It definitely looks like Windows 11 has failed to have the adoption rate it wanted to have. However, I still question whether the hardware requirements such as TPM are the real culprits here. If so, Panos Panay is nothing more then a scape goat as a show for the investors.
With that said, yes the start menu and taskbar definitely can be made better and should. I assumed finishing Windows 11 parts for Windows 12 always was the goal.
In any case getting people to migrate away from Windows 10 will remain the goal. We will see how well this can actually be achieved as long as the hardware requirements remain in place. I tend to see a lot of casual pc people perfectly content keeping old hardware for a long time simply because they don't require a lot of pc power to do what they want to do on their drvices.