To be honest I think this is the way to have gone- yes it has hurt in the short term but long term the gains wlll be for all to see.
If a potential customer comes to HAL/GoI/ADA today looking for information with the potential of buying the LCA, they can sit down and have a comprehensive breif on the LCA's capabilites and the LCA will meet every requirement a customer looking for that a 4.5 gen lightweight fighter could possibly havel HMDS, EW systems, care free handling (full qaduruplex FBW), easy maintenence (carbon composite airframe), IFR probe etc etc- this is on offer from DAY ONE, not some point in the future, not after X amount of planes have been produced. Not to mention, there is a twin seat version (which, no matter what anyone tells you, is a HUGE deal if you want to get an export order).
And just for fun, they can show them the N-LCA taking off from the SBTF, anyone who doubts that this is a mature and capable aircraft will be silenced by that
And then, the fact there is a very clear and well funded roadmap (MK.1A,MK.2, N-LCA etc etc).
She's a little beast and that is for all to see, it isn't a promise to be in the future at an unspecified date.