Yup, it was a complete disaster.
A combination of things- The name of the console, the uninspired design, the focus on TV/media over games (even if some people got the message, a lot didn't) the completely bungled PR following the event and the fake clapping/ permeating arrogance throughout the conference made the whole thing seem like a "bad dream" as some posters were calling it.
You only have to look at the forum/media/developer backlash to know the vast majority were not happy with the show. Their job was to convince everyone with the initial reveal that their product was great, worth spending money on and getting excited over. If anything they've turned a lot of potential customers against them. It's almost unbelievable how badly the whole thing went.
