They may not look like fools to the majority of the audience, who aren't aware that a series was even under development because people mostly don't care about that stuff.
But don't discount internal corporate politics in all this. Maybe the people who pushed for it just want it quietly to go away and not be further embarrassed by their failure. When you've got people constantly angling for your job like I'm sure they all do, it's never a good thing to advertise failure.
This isn't just an isolated case specific to SyFy. Every year the networks fund a slew of pilots that don't get picked up, and nobody ever shows them, even in some obscure summer timeslot to fill airtime. Network viewers wouldn't know that they were failed pilots anymore than SyFy viewers would. Why do they never see the light of day?
Corporate politics seems like the most likely explanation. If everyone were being rational, they'd show the pilots because a little money is better than no money. There's something other than money at stake that's driving this decision.
Another issue could be advertisers. Maybe it's not worth the trouble to try to sell the airtime for failed pilots. Would the advertisers think, "I don't want my products associated with failure"? Would it distract from the main business of selling series time? Would the sales department balk at having "crap" dumped on them to sell? That's a different type of corporate politics but it probably has real influence. In any ad supported business, the sales department would be powerful, they are the ones bringing in everyone's paycheck after all.