I would only add that the iPod is what saved Apple, not the Mac. NeXT’s software didn’t really have anything to do with it. Most Mac users stayed with Mac OS 9 until 2003-2004, because OS X wasn’t ready for prime time until then.
In terms of Apple’s long term survival, everything Apple did between 1997 and the iPod introduction was just treading water. Steve had stopped the bleeding, but the Mac was still not setting the world on fire in terms of market share or profitability. It was on shaky ground until the Intel transition, coupled with the iPod halo effect, allowed people to feel safe buying Macs again.
Yes, I agree. I just didn't want to get into a lot of detail in what was basically an aside to address that Apple's Mac platform did (sort of) survive. But as you observed, it was on very shaky ground and hardly a resounding success. Even today, the Mac business isn't as significant to Apple as iOS or services.