Legacy can't be dominating as Evolution. Because the leader here is Orton, who is booked weak often, compared with Triple H, who has always been dominating throughout his career, if I am not wrong.. and the numbers play a part too..
Legacy do lack a wrestler, who can play a part at mid-card level and go on a rivalry with US Champion for some credibility for the stable..
WQ1: Sure, WWE did a bad job, if we looked at Legacy and thought they would be a dominating heel stable.. But it seems not to be formed for that.. There is no evidence that Ted and Cody seemed threatening or dominating- ever... They are nothing but Orton's lackeys, pretty much... But if WWE planned on making indeed a weak stable which gets heat, one way or other, by doing those dirty works for the leader- Randy Orton, how could that be a bad job on the part of WWE?
WQ2: Adding now another wrestler seems too late.. Instead they could make Priceless capture the Tag Team gold, and book Orton a little stronger, eventually capturing the WWE Title would suffice..
WQ3: Obviously shorter, I would guess.. Shorter means WWE should get DiBiase really over quicker to make a successful face turn...(If he is gonna have one)
WQ4: I don't think so.. I mean, with Raw having many Talents- and WWE trying to push most Talents- as everyone is good enough, it is really not possible to dominate like Evolution did at those times.. Times have changed pretty much now..
So, getting the Unified Tag Titles and having matches on 2 shows a week, and defending them well would be good to see... They would be capturing it soon as they earned a shot at the Titles by defeating The Colons on Raw this week...
WQ5: Well may be.. The Hart Dynasty started/formed some weeks back, and are over with IWC.. But still they are on ECW, not a much watched show, and they haven't done anything great to the level of Legacy.. Sure they are threatening on the ECW-level.. :)
And final thoughts, which would make Legacy look better:
Booking *Orton* stronger.
Making *Priceless* Tag Team Champs.
If possible, involving *DiBiase* in some rivalry.
Making *Ted and Cody* compete every week, against some Tag Team or in Singles Matches.