The story of "The Pin" reminds me that sometimes non of us is a dumb as all of us.
I'm sure it started as a good idea. At some point, someone realized that this was not a great idea, but wasn't able to just pull the plug and walk away. Get enough people in a group that are afraid to speak their mind, and you get something like this machine. Maybe it wasn't all the machine, but the marketing and support.
I'm sorry to see it fail. It wasn't marketed to someone like me, so I certainly don't think it failed because of hobby/collector types. It might have been marketed differently.
Perhaps it's the distributor model that wouldn't allow it, but it seems like Stern should have put 4 or five of these at the entrance to every pinball show in the country for a year. They could have gotten some good PR out of it and maybe even encouraged the faithful to tell their more casually interested friends about it. They could have donated them a raffle prizes etc. You are either proud of your product or you are not.