I don't agree.
They could've used the manufacturing side to enhance the tech, get the components to a cheaper price point, maybe even slim down the whole thing and then when they felt ready to enter the consumer market, spin it off as something new under another consumer-only brand.
Or they could have let someone else take all of the "glasshole" flak, then arrived after that with a trusted, safe, Google product that addressed the concerns.
As they say, you can spot the pioneers because they're the ones with the arrows sticking out of their backs.
They tried going lux consumer and failed. But if they went the manufacturing route first, they would've burned any chance of the other.