I don't see what management has done as an epic failure. I see progress while slow and maybe not as quickly as some would like but I still see progress.
A startup company with a forward thinking product in a new market must maintain flexibility. Startup companies with limited resources do not have the luxury of starting over. Market dynamics can change very quickly and what was once an acceptable plan may need to be tweaked or augmented for a variety of business reasons.
Do you play poker? How many hands do you fold vs play? Sure you lose your ante each hand you fold but it gives you the opportunity to be dealt another. Its when you are dealt that winnable hand you start betting big and push out the other players. Taking the market from a position of strength is ideal and I believe this what this concert will kick off for PhoneGuard.