I think the notion that having less money would have been better for them is interesting. It seems like the amount of money they received gave them the idea that they could accomplish more by spending more; what they really needed was extra time in order to accomodate their extra money.
It is a big risk for startups that take too much money that they suddenly feel like they have the capital to do all sorts of things. Too bad they didn't just ship V1 of the product.