To me, it seems very clear that MS made the decision to release according to their pre-planned schedule and figured that they'd just deal with the remaining bugs/problems as time permitted. This goes for both the SB and the SP4. They wanted to hit the window of opportunity and figured that it was good enough as-is.
This was really a terrible mistake in my opinion. Anyone with even the tiniest bit of customer service experience knows that negative publicity is ten times worse that good publicity. In other words, someone who has had a bad experience is very likely to share that experience with others whenever the opportunity arises. Satisfied customers tend to be rather neutral and generally say nothing. People that have had an issue handled well and successfully resolved will sing your praises and become very loyal if they know that you stand behind your products come what may.
I think that with all of the negative reactions to the serious problems with the SB's and SP4's, MS has lost a lot of sales and I'd love to see the return rate on these machines vs. others on the market. My guess is that it would be a night and day difference in the rates. That and the fact that MS's tech support is next to useless leaves a very bad taste in most people's mouths
Not to tout that 'other' computer company, but on the rare occasions that I've needed to get support from them, not once have I ever been told to simply reinstall the O.S. and all will be fine, even though you'll spend hours doing this and then have to reinstall and reconfigure all of your applications and settings afterwards. Yet, this seems to be MS's standard answer if they can't figure out the problem in under 15-30 minutes.
If MS didn't purposely release a known-to-be-faulty product, I think that the outlook for them is just about as bad. It would indicate that they either never really bothered to test the systems under real-world usage and never actually used them in their day-to-day computing lives or that they are simply completely incompetent and don't know how to test. Perhaps they're learning the hard lesson that their Windows product is actually very difficult to make work well on the hardware that it was supposedly designed for.
No matter what happened or why it happened, the whole situation is simply rather sad.