IMO Alitalia deserves to die, especially since a lot of Italians now hate their flag carrier. If you think otherwise, I would suggest Alitalia leave SkyTeam for good, if you're saying its joint venture with Delta and Air France-KLM (the more powerful members of SkyTeam) has prevented it from expanding its long haul operations.
I believe it is quite hard do determine if a company should "deserve to die" or not from a social and economic standpoint. If Alitalia bankrupts there are going to be severe consequences for several Italian airports – in particular the small ones and FCO – and it will take them several years to recover or they may even close down. Furthermore, job losses do not only regard the Alitalia staff but also all the businesses related to Alitalia such as cleaning services or catering. Therefore, one has also to take that into account. However, that does not mean that a continuously unprofitable company should be kept alive for ever.
As for the joint venture with Air France-KLM, it has already been ended since January because of its non-beneficial effects on Alitalia. However, that does not mean that is has to leave SkyTeam since a joint venture and an alliance are quite different.
Well, you sure have something against Alitalia....
Anyways, i think another problem for Alitalia was focusing its operations around FCO instead of MXP, considering that Rome is mainly a tourist attraction, while Milan and most of Northern Italy, is where the main industrial and financial areas are and where perhaps they should of focused their operations, instead of just giving away that market to Lufthansa, Air France and others.
Whatever happens, either Alitalia is going to become a shell of its former self or just be let to die and another airline rise to take its place.
You are right in mentioning MXP. However, I think that the issue was not focusing on FCO but rather not deciding whether to keep Milano LIN or enhance MXP. FCO all alone has slightly more traffic than all the three airports (MXP, LIN and Bergamo BGY) that "supply" Milan and part of the Northern regions. Moreover, it is not only a touristic city but also a capital. The issue was that when MXP was built it was too far away from Milan and badly connected to it and LIN was seen as more profitable. Furthermore, several workers – based in FCO – did not want to move to Milan. They should have decided with a clear strategy whether to abandon or better downsize LIN and make a long-term investment on MXP or just focus on LIN. Having two hubs (FCO and MXP) is possible but you need a strong and clear management plan which Alitalia never had. Nonetheless, I agree with your future predictions on Alitalia.