This was my impression of how things were going even last year when they had that app development contest. It seemed a little desperate, right out of the gate.
They were one of the firsts on the field, and had every chance to make something amazing, but all I saw was mediocrity.
Useless features, half-done stuff. I still use Nike+... it has the the potential to be awesome. Give me their engineering staff and 1/3 of the budget.
That's uncalled for. Engineering teams are just as capable of wasting time, money and resources. That leadership may have been at fault doesn't mean the engineers were all saints.
Edit: My point is that bad leadership is bad leadership, irrespective of background. Slamming people simply for being 'MBAs' or non-engineering is ridiculous.