I can assure you that no game designer starts a project with the intent of crafting a cheap, sub-par product. Those people love games too much to knowingly create drivel. I'm pretty sure Eidos was expecting Kane & Lynch to be their "big money" hit this season, hence the big marketing push. Unfortunately, the game wasn't ready for the deadline and disappointed everyone involved.
Unlike Valve, not every company can afford to push a big hit release back indefinitely until it reaches perfection. It'd be great if they did, but they are trying to run a business, after all. I can't blame them.
But pulling all their ad money from Gamespot over a brutally honest review isn't a classy move by any standard.