1. The A320neo caught Boeing completely off-guard;
2. The threat of the likes of American Airlines (already a mixed Airbus/Boeing customer and the largest airline in the world) placing a large A320neo order for regional aircraft operations scared the bejesus out of Boeing management;
3. For airlines like Southwest that are pure 737, the prospect of adding a plane that didn't share a common type rating with their existing fleet would complicate their lives and make them vulnerable to a sales pitch from Airbus; and
4. The development cycle for a completely new body was too long for many customers as it would arrive several years after the A320neo.
I don't think any of this is in dispute so the constraints for Boeing were to design a more fuel-efficient plane that shared a common type rating with the 737. To get there:
- They added newer, more fuel efficient engines. These changed the flight characteristics so they had to be moved;
- These engines moving made the plane more vulnerable to a stall situation. To counter this, they added MCAS, which would point the nose down when the AoA sensor told it the nose was too high;
- Standard configuration had 2 AoA sensors but MCAS only ever read from one;
- There was a safer configuration as an optional extra purchase;
- Telling airlines and pilots about this and providing overrides risked the common type rating.
I don't believe any of this is in dispute. It is widely believed, but not yet proven, that the primary cause of both fatal crashes was a runaway MCAS that drove the planes into the ground. It's also believed that with proper training a pilot may have been able to counter this (as happened the day before the Lion Air crash with a pilot in the jump seat).
Now what I find interesting is the response people have to all this. Some claim this is a fundamental design flaw that puts a shadow over the plane. Others believe it will be corrected and everything will be fine.
I'm firmly in the first camp: the plane CLEARLY flies differently to a 737. An automatic system, with no triple redundancy, was required to correct the flight characteristics of the plane.
I'm no expert but it seems to me the plane is fundamentally flawed at this point.