I don't know the full background, but if all is as the OP reports, then I agree with the OP.
It seems that Boeing got bored with making aircraft some years ago, and concentrated on making money instead. They became blind to what they were doing and thought that a few extra bits and bobs bolted into a 707 fuselage would result in a product to compete with Airbus. (Does the 737 still have the girt bars that have to be manually placed into the brackets on the floor by the CC ?)
Not only that, but then trying to twist and bend the certification rules........ A very sad chapter in a once respected World beating company and products. Was it Boeing's will or did they bow to shareholders?
Come on Boeing; Don't keep flogging a dead horse; Get a blank sheet of paper and design the real next generation short-haul aircraft. Probably cheaper in the long run, and far more satisfactory.