I really fail to see how opening the options to which plugs would be supported by just offering a USB Type-A adapter and providing some cables or having the user supply their own is "compromising" their product, unless it makes them too similar to products that are already on the market and have been for a while. I think this is more a failure of execution than it is Apple "killing" the project.
It is an issue of not being able to provide the product that people have given their money for.
If I were in their position, and my priority was operating ethically not successfully, I would refund all the money as they have done, then start again, pitching an only USB product.
