Metro on phones isn't as bad as you're making out. The live tiles work really well for active apps like Facebook. And the typography thing is quite attractive, certainly more than Gingerbread Android and I'd say more than ICS as well. It also feels very snappy even on my wife's low end 610, versus equivalent specced Android handsets (e.g. Galaxy Ace) and even the iPhone 3GS. The only actual problem it has for me is the woefully underserved app store but that's a dealbreaker in itself.
Of course it screams that, they are desperately trying to stay relevant. So is every company. What else should they do, just keep packaging the same desktop for the next 30 years while Apple slowly drinks their milkshake?
Apple never tried to cater to the low end of the smartphone market. It's not a tactical mistake at all, it's their entire philosophy.