Defend it all you want to the damage is done. I won't say its impossable for a game to recover from a bad launch just that its never been done and with SE track record these past few years they won't be the first. Yes I can never "buy" another SE title yet still play the good ones on the used market. That hurts SE and at this point in time they need to be punished. That is how companies learn.
Also "your server" has 1K players at peak is fact that its not the norm. Other servers barely get 300 to 400 at peaks and are getting merge(its going to be eatten alive in the reviews). It may one day recover the cost but damage has been done and the true cost will not be know for years. Also like I been saying whats to stop them from pulling the same crap with FF14 when its starts to become dated will they milk your MMO to fund another or will they update it. Will they cut the dead weight of a console if it started to hold back the game? Another fact is 1mil people may not bother with FF14 and after the crap they did with FFXI to push out 14 the mass player base migration they had hope for will also not happen.
While SE might not go under. They will keep merging with other comapnies to get thier hands on titles they haven't burn to the ground to stay a float, oh wait they just did that not long ago. Then their is the the other MMOs that are better then anything SE could dream of producing.