It really was a great machine for the price, and despite all the defects you mention above was really a very productive machine. The mistake people in the industry/press made was judging it against the Amiga as a games or graphics machine; it really was more of a productivity machine that could also play games pretty okay. It slotted between a PC and a Mac in terms of style and architecture; Mac-like GUI but MS-DOS or CP/M style OS.
It's not a surprise all the hardware corner cutting and oversights and omissions (no blitter until it was too too late ...) because the modus operandi was Rock Bottom Price and they were racing against the clock to get it out before Commodore could launch the Amiga.
But I feel it really fell over because of the Tramiel's odd cutthroat business style. They screwed their retailers, and they did a terrible job on software development. Hardly anything was done on the OS after the initial rather brilliant release. They just didn't invest in it until they did a big burst of quality work on it when they hired Eric Smith and brought MiNT in house etc. around the turn of the decade and the release of the Falcon and the TT030. But by then... too late.