Don't ship broken hardware.
I have a tech journalist friend who knew I was extremely interested in the TouchPad prior to launch, and let me play with his review unit for a bit. I was ready to drop $500 on one at launch, and walked away crushingly disappointed. The software clearly wasn't ready and with the product launch only a few days off, it was clear that HP was pushing this thing out the door too soon.
Here's the thing - I could tell that the problems were software-related and could be fixed by HP down the road. But HP went from a willing customer with $500 cash in hand, to one that two months later says "eh, maybe I'll pick one up if I catch one of those $350 sales." And I'm sure it's cost them sales since my tl;dr when people ask me about it is "absolutely brilliant interface, awful performance. I wouldn't buy one yet."
If HP had left the TouchPad in the incubator another couple of months and sorted out the performance issues before kicking the thing out the door, the reception would have been very different. I really, really wanted to like the TouchPad, and HP blew it.
You don't get do-overs on first impressions. Apple gets that. If the rest of their competition would figure this out and push out complete products rather than rush them out on an arbitrary time scale, Apple would be a bit less dominant than they are now.