We examine the dark matter content of satellite galaxies in Lambda-CDM cosmological hydrodynamical simulations of the Local Group from the APOSTLE project. We find excellent agreement between simulation results and estimates for the 9 brightest Galactic dwarf spheroidals (dSphs) derived from their stellar velocity dispersions and half-light radii. Tidal stripping plays an important role by gradually removing dark matter from the outside in, affecting in particular fainter satellites and systems of larger-than-average size for their luminosity. Our models suggest that tides have significantly reduced the dark matter content of Can Ven I, Sextans, Carina, and Fornax, a prediction that may be tested by comparing them with field galaxies of matching luminosity and size. Uncertainties in observational estimates of the dark matter content of individual dwarfs have been underestimated in the past, at times substantially. We use our improved estimates to revisit the `too-big-to-fail problem highlighted in earlier N-body work. We reinforce and extend our previous conclusion that the APOSTLE simulations show no sign of this problem. The resolution does not require `cores in the dark mass profiles, but, rather, relies on revising assumptions and uncertainties in the interpretation of observational data and accounting for `baryon effects in the theoretical modelling.