As I mentioned in a Model 3 forum, this is less about the fact that a $35,000 Model 3 won't be available for another year or so than it is about the fact that hundreds of thousands of people plopped down a $1,000 reservation because they thought they were getting a $25,000 Model 3 ($35,000 car with ~$10,000 in credits and incentives).
That dream is now gone. When even Tesla, who are extremely optimistic about their own delivery times, states that the small-battery Model 3 won't be available in time to take advantage of the $7,500 Federal Tax Credit, you know it's not happening. Essentially, so much for the idea that Tesla was going to be able to produce a superior EV to GM at a lower price.