There are plenty of senior executives who make bad decisions for bizarre reasons. It may not necessarily be commonplace but it is definitely not rare. In my previous career in software development of 25 years duration, I saw it several times first hand. I don't know if you're naive but what shade of rose are those glasses you wear?
I can appreciate there are lots of bad decisions made in hindsight, by senior executives, politicians and each and every one of us. We're a bungling species.
What often happens is that a decision has to be made at a particular time
despite the lack of full information. Because we can't always predict the future, it often turns out a particular decision was bad with the benefit of hindsight.
However, if you have examples of senior executives making decisions for bizarre reason, then describe a few. Perhaps such executives were drunk at the time, or in love, appointing their mistresses to senior positions.
A reason for a particular decision may sometimes seem bizarre because we're not in possession of the full circumstances affecting the decision.
For all I know, Sigma executives might have been ready to announce an agreed price of $2,000 (or less) for the SD1, when it was revealed through the grapevine, or company spies, that Canon is soon to unveil a 30mp cropped format camera with improved high ISO performance, improved video and a few other useful features which the SD1 doesn't have.
In other words, the SD1 would soon be dead in the water even at a $2,000 price. Perhaps a $7,000 price tag was designed to minimise the losses.
I'm just speculating of course.