All of the corrupting forces you listed are foreseeable, even inevitable given a certain corporate structure and position in a market. It is simply bad business, naivete, that made them think they could realistically achieve what they wanted with a company that survives by making money.
Maybe, just maybe, it's not always wise to blindly take people, in positions of power, with much to gain from your believing them, at their word...?
(And if it was true naivete, I don't understand why the consensus isn't "let the company die, a better one will take its place, these people can't run a company" a la the vaunted free market principles that imbue the community of sycophants rooting for Musk et al.)