You are quite correct that Gorby had his butt kicked. There was no way he could win.
However, I give him enormous credit for the way he lost. He most certainly could have ensured that the Soviet Empire collapsed in blood. In fact, it would have been quite possible for hundreds of million to have died during its fall.
I think sometime few of us really realize what a bullet we dodged there.
Gorbachev was the fourth Soviet leader to face Reagan and I wonder if he was chosen to fit the times and climate that Reagan had created.