I don't think there is an advanced technology rotor craft without cringe worthy weaknesses. So it is pointless to harp on the various failures, there have been lots, widely distributed.
The issue here is that the Army is trying to advance the performance of VTOL aircraft.
That will take effort, but we all know that without a schedule, nothing ever gets done.
So there is a schedule and SB has failed to meet it.
That will cost them some, no doubt, but that is peripheral. The main question is whether there is some really fundamental flaw inhibiting the scale up of the co axial rotor concept.