I don't think other Physists misunderstood what Einstein was trying to do.
In my eyes, Einstein fails by thinking he can link all of Physics together in a unification theory when there was, and is still, a huge amount of Physics knowledge left to be unearthed. He only knew of Gravity and Electromagnitism as two funamental forces and today we know of two others, and yet, there could still be more, thus he was doomed to fail from the start. So I see Einstein as being quite naive in a sense. No doubting his ambition & genius though.
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