Chuck, with all due respect, have you actually read HP's financials? HP IPG operating margin is ~17%, PCs are more like 3%. For comparison sake, Ricoh's OP was something like 3.5% when they last reported (it's been a rough year for them, it used to be more like 9-10%). What you are saying is not borne out by the facts.
Losing high vol pages to digital copiers? According to IDC, the digital copier segment is eroding due to pages shifting to MFPs. Looking at MFPs, A3 MFP share has gone from ~95% in 2006 to ~65% in 2009 while A4 share went from 5% to ~35%, many of those being printer-based MFPs. Now that's not to say they were all HP by any means, but do you have data to cite to support what you just said? HP printers are displaced by A3 copier-based vendors, sure. That's the sales strategy for those guys. But the overall trend suggests there's more to the story.
No feet on the street? Are you selling to SMB only? HP has an enterprise-focused direct sales force that sells transactional and MPS deals to global customers. They also have on-site delivery people to run the MPS engagement. Below that level of customer, the guys at LaserNetworks seem to be able to make a good business out of it. There must be more to the story.
Like I said, Chuck, I respect your point of view, but to me it sounds like FUD unless you provide facts to back it up.