The thing that really blows my mind is that everyone (well, except maybe some marketing people) knew that it would be a disaster and they still went along with it.
But it boils down to the same issue Dell has had with every move in this direction.
You can't use a marketing/sales model for pre-packaged stuff and at the same time allow customisation. You have to commit to one or the other.
Dell really seems to want to move to the pre-built and off the shelf product model, only "problem" is that the a lot of the corporate customers don't want it and the consumer space is pretty dead :D