I think it's a good decision. They can't afford to cut any more features to make a 2006 date. The features that need the most testing, frankly, are enterprise features related to the core of the product, like user account control and how it will lock down services to make them less vulnerable to a worm. Things like that fundamentally change the way Windows works, and they couldn't really back out of them.
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There were political problems and technical problems. The two divisions have different business incentives, and the company, knowingly or unknowingly, set up a situation where their business incentives were not the same as their technology incentives.
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