For the regular Joe Everyman (lol), they don't necessarily regard Time magazine based purely on the prestige behind the name. I never thought of Time as a journalistic magazine to begin with, but then again, I've never read it. I find so much more substance in the smaller-run publications, and find them so much more worthwhile. Sure, Time is a big vehicle for publicity and it really sucks that they would mess with you in this manner, but the article will still do what it was intended to do. It will get people interested, who probably have not even heard of chiptunes, and they will check out the music.
So yeah, this is a stain on what could have been a great opportunity, but I think there's a silver lining to this cloud, or whatever the phrase is. There will still be good from it. Plus, in addition, the 'controversy' over the mis-quoted interview will also probably generate a decent size of buzz. So anyway, congratulations. I did listen to the samples and I wish I had the kind of money that I could just throw at this thing, but bah.. it sucks being poor. But the samples were great.