1. The A320neo really caught Boeing off guard. The 737 MAX was a panicked reaction to something that they thought would threaten their business to a significant degree. The A320neo and A320 have a common type rating too. Googling seems to suggest the differences are fairly minor however. I guess Airbus benefits in the A320 being a newer airframe than the 737 (which is ~50 years old now)?
2. Somewhere along the line this is a management failure of gigantic proportions. That management would risk Boeing's reputation on something that, in hindsight, is so incredibly foolish is mind-blowing. And the buck stops with the CEO. If this ends with anything less than the CEO deciding to spend more time with his family it's a joke. And whoever replaces him should clean house with anyone remotely responsible for this.
This isn't unprecedented either. Through this fiasco I came to learn about the 1990s 737 rudder issue [1] and it's scary how similar the reaction is. "The planes are fine". "There is no issue". You know, until there is.
I expect the only thing stopping a lot of airlines from cancelling their 737 MAX orders and buying A320neos instead is at this point they'd probably have to get in the back of the line and wait years. They really have no choice but to stick with the 737 MAX now.
Actually I guess airlines like Southwest (who are 100% 737 IIRC) are kind of stuck anyway. It's the likes of American Airlines who has such a large and diverse fleet that really bet on the wrong horse.
I really hope this ends in a court case or even better, a criminal case. I really want to know who signed off on this plan and at what point warnings were given and ignored.