I cannot say as I agree with that reasoning. Unveiling working hardware would have afforded them a certain degree of credibility. While not presenting it actually undermines their credibility. It really boils down to having proof that they do in fact have a working console that can make it to market in the timeline they outlined. If something had to be held back then the games would most certainly have been the best choice. Shortening the show, or lengthening those segments. Hell opting to include more third party games. Would have had the same effect.
That said there is a possibility that should be considered. That they simply haven't settled upon a production design for their console, and do not want to be held accountable if there is a obvious deviation from what they had presented previously as was the case with the PS3.
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