Agreed.
The USA failing to qualify for the 2018 World Cup, from a weak and forgiving CONCACAF qualifying set-up and despite only needing a draw against a crisis-ridden out of form, Trinidad & Tobago team, was one of the biggest epic fails by any international team that I can recall (far worse than Italy or the Netherlands failing to qualify for the same World Cup from the UEFA set-up). But they look to have recovered since then, and have a bright future, with players getting more experience in top 4 / top 5 European leagues.
I agree with you that Martino failed and did a poor job, but he also had the least talented group of Mexican players since the 70s (according to my wife's parents - definitely the least talented group that I've seen in my lifetime) at his disposal, and that there are fundamental, institutional issues with Mexican football as you said, the inefficient production pipeline, the Liga MX model, the obsession of making money over football development, the overly 'insular' outlook of Mexican football etc.