Yes.
"schadenfreude"
No. It's just a pattern we can see over and over again. I've worked for some companies that showed that pattern and consulted some which sat in that trap. And it looks like focusing on tech excellence - and I assume they are excellent - didn't help Etsy with growing their revenue.
Is Etsy a tech company? Or are they a retail-oriented market place? Did they focus too much on technical/product excellence? Many companies I have seen have a wrong selfimage. Did they solve the wrong problems? These are the questions I'm interested in.