So, I think it look pretty bad when you release an update and pull it off the web. I'm pretty sure this has happened for at least two of the the last three Delphi XE2 updates. I'm not complaining because I'd do (and have done) the same thing.
The only problem is, how do you do this gracefully? And, how do you alert the 10-20 facilities ( 500-2000 end users ) who downloaded your awful software that what they downloaded is no good, but what they're going to download is super awesome?
The reason I ask it is because I work for a small business, Embarcadero is a big(ger) business and we do the exact same dumb thing when our release is found to be deficient. The problems might be as simple as a file missing or even a legal problem, the code might be perfect and there still might be problems with the app.