Doom3 (the game and the engine) was a misstep but not a total stumble for ID. Quake4 was handled poorly and I don't think ETQW was marketed properly as well.
Quake IV and Quake Wars wasn't even handled by Id though. They're supposedly shoving the new Wolfenstein off to an outside developer as well (like they did with the last one, in fact!). Quake Wars seemed pretty good for what it was. I've never liked the Battlefield-like games however, not outside of Tribes at least. I'd personally love to see a sequel to the original Quake, in all its Lovecraftian goodness! Now that would have been something that could have benefited from the DooM 3 engine (as Prey already showed it to be capable if coupled with the right game design).