A good summary Stories. I wasn't around as much for Day 3 sadly being busy but something I would like to point out that you mention here,
From my perspective, the willingness of SbS to continue the conquest event despite the Day 1 issues showed a high level of perseverance. It also showed that the Dev team, although they may get emotional, does look for the best possible solution.
Not only were the devs willing to persevere in running Conquest, they put in multiple extra man hours the night of Day 1 (Caspian left to work on fixing Conquest, then came back and did the Q&A, then went to sleep) and on Day 2 prior to releasing Conquest when they very easily as you said could have scrapped and re-grouped for next time.
Overall I think Conquest was a good chance to see in micro both the weaknesses of Soulbound as a small studio that didn't have the resources to spare in looking at Conquest prior to launching it during PAX AUS, but also their strengths in that they saw an opportunity to promote engagement for their players and they went for it, they saw that things could be improved and they were on the ground with their CEO speaking with players directly almost immediately once problems were seen, they were willing to put in the hours on something that doesn't see them much return (the time spent on Conquest isn't time they can translate into Elyria) because it was causing consternation for the community and they wanted to alleviate that.
When it comes to would I rather a studio rich in resources and poor in passion work on something like Chronicles of Elyria or vice versa, I know which I would pick and which I'm glad that we have.