I don't think that Royal mail is losing the plot. I still get goods delivered the day after placing an online order with the likes of Amazon and Chain Reaction Cycles. Folk who buy some the the high quality tat that I place on Ebay often post feedback within 24 hours of me dispatching the goods.
I have to say this is my experience of Royal Mail as well. At work, we have a lot of stuff coming and going and the service has always been excellent and I can't recall anything ever going missing in the 5 years I have worked here. I also buy a fair amount of stuff from Ebay and other UK based retailers and have it sent to my work address rather than pay additional carriage to take it a few miles across the border to my home and again, the service is excellent with many things I've bought from online arriving the next morning, even heavy items like a clutch and pressure plate for my car bought from GSF. Perhaps I'm lucky to work about 100 yards away from the main Royal Mail sorting office in the area.
In comparison, the postal service in ROI is simply hopeless with even local letters often taking a week to be delivered. I missed job interviews and a hospital appointment because of this in the past.