No, they know FaceOS and Fire(sale)phone did poorly but that Amazon is getting the side-angle with Echo/Show so they figured they might get a good 2nd place with the "I don't care if it's creepy" crowd.
If their best and brightest couldn't see that coming... they're in trouble.
except, usually you get a much better deal on a product when you go the "i dont care if its creepy" route. this is twice the price of the Amazon Show.