^ As has been stated before, they're just one aspect of a larger problem. TNA was going down hill before those two joined. As long as they keep on doing WCW type programming and booking they won't be any threat or competition for Vince.
Not really. They had a poor start to 2009 quality-wise, but by the end of the year (especially the last two PPVs) they were on a real hot streak. Styles, Daniels and Joe were in the main event, Wolfe had huge momentum after his series against Angle, and the introduction of Bischoff and Hogan should have seen a big boost in popularity to capitalise on what were already record ratings.
Instead, the direction was completely changed, the writing lost focus, viewers disappeared and the quality fell.
TNA will probably never be competition for WWE in the sense of getting to the same level of popularity. The reality is that WWE are far more established, and wrestling is on a massive decline at the moment (for many factors other than lack of competition.
All they need to be is a viable alternative. Turn a regular profit and maintain or increase their level of exposure. Their ratings this year have been their best ever, so if they can continue that boost and increase profitability, they will be doing well.