To then use such a failure as a marquee project demonstrating the supposed "superiority" of XP is unabashed chutzpah.
Now, large IT projects generally fail. So, XP is not wholly to blame.
However, the proponents of XP pushed it as superior silver bullet to navigate both the political and technical waters of software projects. The fact that C3 was such a spectacular failure simply demonstrates that XP really wasn't any different than any other methodology being pushed by people with an agenda.