I think in the right cirumstance "fail" can perfectly describe a situation... but its when some people are not the best at judging the situation the word is overused. Just like rick rolling when some people who shall not be named did not understand the correct situations for it and called other geekzoners while they were working to phone rick roll them huh?
It was a great term in the early days but I think it's getting close to be very overused now to saturation point which will fast turn it into a "past fad" word like a few that have gone by in recent years and earlier.
I would defind real fails as being someone/thing trying to be a hero or showoff and getting it totally wrong with obvious consequences like the drunk backflipper I videoed that planted his face in the ground on Saturday. For the rest of the uses, we need a new word!!