I don't know. You're right, of course - it's no coincidence that the one time they used the market research and compensated against it, they got orders - but I don't think children are entirely the wrong market to be aiming at. Pester power can be a huge driving force. The skull's a design boo-boo but as a product, it's hardly worse than Monster Munch.
Targetting children didn't pay dividends, but it's a huge market, and absolutely could have. Marketed right, that could have sold big - and did. One of the large retailers stated that they were very interested in what mum's buying, and I think her kids are one of the single most reliable ways to open her pockets. Parents buy their kids loads of shit they aren't personally fond of.
I agree that something more mum-friendly (like Popty Ping!) could've shifted more units by more neatly hitting both target audiences, but I think the market research proved that the idea they went with wasn't a total washout by any means whatsoever.