Wow, this exactly describes my work in a dysfunctional startup. We set impossible time goals and don't make them. We are making progress on our software project. The goal of this is a faster something, but our only demonstrated and tested scenarios were extremely optimized by us. I don't see us actually being useful in general cases. In such a situation, I am just trying to hang on until my options vest and then move on.
I have thought about that. It's hard to estimate the value of unlikely to succeed company options. The answer of course is do your own startup, so you can be the one making foolish decisions and causing chaotic development, instead of someone else.