According to Ars, Steve Jobs sent out a letter to Apple employees detailling the failure of the launch. Hindsight being 20/20, Jobs noted that the launch could have been delayed and didn't need to happen alongside the iPhone 2.0/App Store launch. Jobs also mentioned that the push updates could have gone service by servicei.e. Calender, email, etc..
Makes sense
To help with Apple's very ambitious service plans, Apple also announced that Eddy Cue will now lead all Internet-related services at Apple including iTunes, the App Store, and now MobileMe. Cue will report directly to Steve Jobs which makes him a pretty big cog at 1 Infinite Loop.
According to Ars, Jobs said:
"The MobileMe launc