It isn't that they're terrible, they're just not ever going to have the depth of a Metal Gear game or the loyal following of a Mario game, is all. They also have surprisingly few of them...it's been out a while now, there should be more, don't you think? Some great stuff is in the pipe, don't get me wrong, but let's face it: You get the Xbox you're going to have Halo II, Maybe two other games of your choice/genre preference, and then the sports games. You have to admit that it is limiting, somewhat.
Also it should be noted that if Sony is not going to be able to put it out because of production issues it probably isn't actually their fault; it may be the fault of their hardware suppliers, etc.
As for the stock rising, what do you think is going to happen when every last one of those first bunch of PS3s sells out in under a week? Hello Money.
Lastly I would just like to point out that the PS2 was delayed many times and still did fine (better than fine, it utterly crushed three opposing machines in the grand scheme of things). People who want the thing are only going to want it more if it's later; nobody I have ever seen has gone "Wow, it's delayed? Well I'm not going to get it at all then!" That's just illogical. It's like sitting around for two hours smelling some great food cooking, and right when your girlfriend takes it out of the oven, she goes "Oh it needs another 15 minutes" and you go "What? Hell, **** it I'm not hungry anymore."
Sony is a smart company with lots of departments, products, and marketing strategies. They are not "making fatal mistakes"; they are running damage control, that's all. If anything the PS3 is going to BOOM business for them like never before. After five years it's longevity will have paid off in the long run, just like the last two. You know what they say--if it ain't broke, don't fix it.