I owned and briefly used a very similar German-made device called the Axbo: http://www.axbo.com/axbo/CMS/CMS.aspx?Language=E In my experience, it actually didn't work at all. I suspect one main problem was that you could only set the alarm to wake you up within a 30-minute window, which meant there was a fairly high probability that the optimal point in your sleep cycle would occur before or after the alarm (given th…
WakeMate never actually collected any money from the pre-sales, so I don't think there's anything that could be considered unethical about it. If we had, that'd probably be a different story.
> Is it advisable from a long-term strategic perspective...
That remains to be seen, but investors wanted to see actual pre-orders; since the investment was necessary to hire folks like me to finish the product, it was the only short-term strategy available.