In fact, I think it shows a lot of discipline to stick to what they said they'd do.
I think a very valid argument can be made that this is the problem with the Milk model. The fact that they're funded without a product mandate means that they have a nice safety net so instead of pivoting a product and trying to fix what they have, they "shoot it in the head" and move on. There's no incentive to try to make what they have work. This isn't discipline, discipline is about making the hard choices and its easy to put a product out to pasture, its in fact the opposite. There's no reason to be disciplined when you're just playing with other people's money.
This is pretty much the opposite of what YC does which is give a smart team just enough money to live and make them fend for themselves. You're a hell of a lot more disciplined when you're clawing and scrathcing just to be ramen profitable.
I'm not saying terminating a project that didn't meet expectations is wrong, I'm just curious about the lasting implications.
I figured it would be killed after how little people in my area were using it and I knew what I was getting in to, but I think I'll still let other people be the test dummies next time.