As a labor lawyer, it always seemed that this was the likely result at any initial deadline for negotiations (be it a lockout at season start or strike on the brink of the playoffs). Failure to reach an agreement was likely a baked-in consequence of the starting negotiating positions combined with a relationship that is less than "okay" (to be charitable).
Although I understand the frustrations, welcome to labor negotiations--they aren't pretty. We'll get there at some point in the next several weeks to months, but this is how it is designed to work. In baseball, given the resources on both sides, it's about imposing some level of pain on the other in order to get to agreement (again, a product of a fraught relationship). As a baseball fan, I for one am happy that we have a lockout and are seeing this playout before a season starts. Without the lockout, we'd almost certainly just push this down the road to the brink of the playoffs--at which point we'd see the players walk off the job. I leave it up to you as to which of these scenarios, long term, is better for baseball. We'd all prefer option C, an agreement and opening day. But that was basically never in the cards. So we move on to the next best option.