My view is that they can't/couldn't figure out what they want to be. On one hand one of their biggest selling points is their classic heritage and styling. Despite their issues, many people of all ages look at older XJ's from the 60-90's, or the classic E type etc as the definition of Jaguar, British class and style, but they've forgoten that.
The problem for me started with the S type, which tried too hard to be retro, but unlike things like the Audi TT, MINI, Ford GT, BMW Z8, it came out as lumpy and ill proportioned. It was relatively well received by many at the time, but it hasn't aged well and I never liked it. Then they tried to force classic Jaguar styling on a Ford Mondeo and made it look ungainly and cheap. After failing at the (at the time) still very popular retro craze they then decided to doubled down on their new modern look for the XE and XF. The problem is it came out with a bland generic look that has no real visual queues to the past. You may not like modern Merc., Audi, BMW styling, but you line up their products over the years and you have a logical, easily visualized link the their own design language. Jaguar have lost their svelte proportions, and their attempts at a corporate 'Jaguar' grill could easily be from a Chinese knock off brand trying to ape Infinity or Audi.
Both the XK and later XF are certainly excellent GT cars, but that class of car will never sell in sufficient numbers to keep a whole brand afloat unless you're playing in the $100K+ starting point.
When it came to SUV's they have a basic problem that their sister brand Land Rover, and Range Rover, already own that segment of the luxury SUV market. Their isn't enough to make the bland corporate styling SUV's stand out. When Porsche launched the Cayenne, or Audi their various Q models those vehicles all used the corporate styling clues and it's obvious what they are from a distance. Take any current Jag, park it 100 yards away and paint it silver with no badges and I bet you couldn't identify it. Do the same with an Audi, BMW, or Merc. and I guarantee you'll know what it is.
Then add in the usual lack of cash for product development endemic to the British auto industry (yes I know it's now Indian, but it's still the same mentality underneath) and their products are simply outclassed by the opposition. Without the emotional styling, heritage link, they are slowly sinking.
As a life long Jaguar fan it saddens me, but I'm not seeing a rosy future for them.
Oh, and Frenchy, suitability for low buck club racing has less than zero effect on public opinion of a luxury brand.