Nope. Not even remotely close. It just doesn't work that way. Not making the game would have been fine. After funding the development for years, canceling it would have cost them more than it did now. At least now they can make some of it back AND have another well received exclusive in their arsenal. What you mention would have worked only if it was cancelled much earlier on and by that time they simply didn't know it was facing problems. Keep in mind that the game would have come out much sooner had Sony not asked them to make it for ps4 instead and then having to do a lot of work to achieve that.
In the end, it worked out. Even if it's not perfect, it's much better than canned.
The biggest costs of a game is production (putting out on retail and advertising). If thats the case, Microsoft wouldn't canned the game. Stop the bleeding before it gets worse is the best thing Microsoft could've done. They could use the money else where and please there stock holders if they make a profit overall on the xbox division this year. More money will allow Microsoft to get a bigger budget from their CEO to do more things.