> Did it though?
Yes. Science is about more than producing novel ideas. A lot more.
> Nobody published this, which is good, right?
People did publish it, and many responses. They published on Arxiv. I think you are misunderstanding what papers are. Papers are simply a communication method between domain experts. The purpose of journals is to improve distribution and to provide a signal to help experts sift through the (possibly) large number of work. But you need question if they are accomplishing the goals. Do they provide more access than arxiv? Certainly no, arxiv is about as accessible as it comes. Do they provide better distribution than other modes? (colleagues, google scholar, semantic scholar, Twitter, etc) This is debatable and likely depends on your domain. Do they provide a useful signal to other experts? Also arguable and depends on your field. I'd say that the more papers/yr in your field, the weaker the signal. THEN you need to ask if these benefits outweigh the costs. That's both monetary costs from governments, corporations, and universities as well as the time costs to format the papers for the specified venue, deal with the back and forth with reviewers, and being a reviewer yourself. After you have considered the costs and benefits you can answer if these venues are good for science.
> Max Planck Institute gave the most conclusive answer,
Via "preprint"
> And now, Mr. L and Mr. K will not receive funding for this material, because it decisively failed to publish, which is also good?
Indeterminate. Science is noisy. You're wandering around in the dark. All we know is that they failed. But >90% of research results in failure. What is a better question is if their work advanced scientific knowledge. Which it looks like it did.
> I don't know. It sounds like the academic incentive structure worked really well here.
I'm what you think the academic goals are, which we need to know before you can determine if the incentives are aligned. For some added ethos, I'll reference Peter Higgs[0]
[0] https://www.theguardian.com/science/2013/dec/06/peter-higgs-...