Delays can be both a positive and a negative thing.
Positive: If a game is being delayed, then that means that the developers are being honest and considerate with their gamers. They believe that the game is not up to the expectations that they have promoted for the game and they really want to release a game that is complete, compelling, and proud to carry their developer's logo. So I could stomach waiting 6 months to a year longer for I game I am anticipating if it means that the game will be great upon release.
Negative: If a game they promised will be released in 2011 and is seen or heard of until 2014, is not going to do so well in selling units. Unless I really am looking forward to this game (rare), then I probably would forget all about it. I might see it at a store or catch word that it was released and I might purchase it, but chances are that I would already have a handful of games that I am already invested in, putting the game in my 'maybe once I'm done' pile. Also, if a game is delayed for so long, the expectations on the final product would be too high.
Here's an example of delays being both positive and negative: KINGDOM HEARTS 3
Yes, yes, I know, but hear me out. After 2006, we were all anxious for KH3 to come out. To this day, we have had 3 games and none of them on a console and each touching a little bit of the untold stories of the series. KH Days told the story of Roxas, an early protagonist of KH2, which proved the world that you can have a PS2 game on a handheld. KH:BBS was the 'intended' KH3, but instead was a prequel to the series. However, it was really good and this game deserved to be realesed on a console. I would have gladly paid $60 for this $40 game if it meant it would be playable on my PS3. Finally, we got KH:ReCoded and if you haven't heard of it, GOOD. It was a waste in the series which did little more than to remind people that KH isn't DEAD and good things are on their way.
You see, by releasing games you have some idea where SE is going with the development of KH3. Story seems to be one of the focuses as rather then tell all this in 2-3 disks for KH3, they made smaller games to fill us in. Also, developing the combat mechanics promises that the combat system will be new, exciting, and tense (at least if you take KH:BBS into perspective).
The only problem is that the question still remains: WHEN IS IT COMING OUT? As of today, we only know that KH 3D will be released in spring 2012 for the 3DS and it's rumored that KH:BBS will get a sequal. If SE doesn't figure out what they are going to do, they may as well make KH3 the next Duke Nukem Forever (although in retrospective, the HD re-release of FFVII might actually be closer to this truth).
