They messed up the second they pretended to be a better Bitcoin. If they maintained the narrative that they are trying to be something different, then I'd have more respect for the project. They've forked, changed the consensus system and they can change the issuance of their PoS coins whenever they wish. "Ultra sound" money , they say...
I think that's a solid distinction. there's more you can point out, but just branding yourself as a Bitcoin competitor makes you a failure. the decentralization LARPing is the other thing that gets me the most