Problem here is with understanding of rebuild.
If you look at it as linear process where team has to: bottom it down, suck, win lottery, get lucky with ping pong balls, get stars - than sure , Magic are failing.
But how many teams did that ?
Suns and 76ers.
One of them are 4-20 right now and without any hope for future. Their fanbase is losing mind about new first overall pick that plays defense like ass.
Other team had i think 7 lottery picks, Noel , MCW, Okafor busted out, one turned into superstar, one into overrated star ( Simmons) and one in good role player ( Šarić) and among 7 ( i guess seven

) two of them ( OKafor, Fultz ) are some of the worst lottery busts of last decade.
There are sh** loud of teams that never did linear process of rebuilding that includes Celtics, Spurs,Warriors, Raptors, Nuggets, Bucks, OKC and Pacers.
problem with bottom it out is simple. In order to get to the bottom you have to sell everything worth anything. When you reach bottom it's super hard to get back up. And most teams, like Magic ( 2012-2017) find themselfs trapped on bottom where they simply can't get over a hump of sucking as their prospects become actual players on actual nba- non rookie contracts and all good FA avoid rebuilding teams like a plague or ask unrealistic contracts.
When you consider shrinking tv deals, shrinking interest in media, shrinking audience in games ,shrinking rewards for tankers nowdays it's not hard to figure why most teams are more afraid of being new Suns than new Philly. ( not like Philly ever won anything with their strategy, or any other team ever that bottomed it out ).
Life is what happens when you're busy making other plans. -John Lennon