Almost always, people are 'failures' because that's the identity they've acquired while growing up. And ultimately, that failure identity is just a thought (or collection of thoughts) that can be transcended.
The 3 Principles is the best philosophy I've encountered for seeing past the illusion of thought and false notions like 'failure'.
Edit:
@kaylinart: 'false notions like failure' sounds a bit critical (oops!) - I wasn't invalidating your post in any way. You make some good points about some of the thinking traps people fall into. Just thought I'd clarify :)