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I think they were both too late and too early.
They were too late to take advantage of the iPad / tablet buzz. By the time they started shipping people were already seeing previews of Android Honeycomb tablets from better known companies.
They were too early because Honeycomb wasn't ready for tablet yet, so they used an older Android that Google itself did not recommend for tablet, and ambitiously tried to customize it themselves. They have some interesting ideas, but really they ended up delaying release too many times.
Likewise, the pixelqi tech is very interesting but not quite there yet; it ends up being not particularly great in either backlit or reflective mode.
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