The "1000 people in India watching cameras" reveal was the moment the magic died. Once you know the wizard is just a guy behind a curtain, you can't unsee it.
The interesting question isn't whether the tech was ready. It wasn't. The question is whether Amazon learned anything useful from the attempt.
Computer vision for retail checkout is a legitimate hard problem. Occlusion, similar-looking products, people changing their minds. I've worked on CV pipelines and the gap between "works in the demo" and "works at scale" is brutal.
My guess: they collected a ton of training data from those human reviewers. Whether they'll use it for a v2 or just write it off, who knows.