Poor on-time performance is the airlines' fault to the extent that people want to buy their products - the fares are ridiculously low. There's a highly competitive market that benefits consumers because they'll get somewhere cheaply. They just might not get there on time.
You can't criticize Independence Air's management for trying something, but it was apparent it wasn't working after a month. They should have changed it then, but they were all too busy drinking the Kool-Aid.