I don’t disagree it compares favorably to other airplanes.....however the events you detail are what drove Lockheed out of the commercial airline business, never to return.
No, Rolls Royce’s problems drove Lockheed out of the commercial airline business (coupled with the foulups on the C-5 program).
The problems really started with the Electra - initially a badly flawed plane. By the time Lockheed got that sorted out, they’d missed the first generation of jets, losing the commercial market to Boeing, Douglas, and Convair. They then missed out on the second generation to Boeing and Douglas. They tried to jump back in with a single model large plane, but made the fatal mistake of choosing Rolls Royce for the engines. Douglas eventually sold about 640 of the competing 10s and 11s with P&W (later GE) engines (not counting the tankers) compared to the 249 1011s eventually built.
Between the problems brought on by Rolls Royce and the C-5 fiasco, Lockheed just didn’t have the resources to extend the 1011 line or to develop the more popular smaller jets which were in greater demand. It was money problems, not reputation, that killed Lockheed’s commercial program.
Of course, Lockheed had one other failed commercial product in the 60s - the Jetstar, which with 4 engines compared to the competitions twinjets, was never able to compete in the business jet market. Almost double the maintenance costs and far higher fuel costs.