Pontiac had lost its direction a long time ago and lacked the legitimate products worth keeping it around. Rebadged Cheviys don't create legitimacy for a brand, the G8 was a huge mistake and sold horribly.
"Rebadged Cheviys don't create legitimacy for a brand"
With you there, but not here:
"the G8 was a huge mistake and sold horribly."
The car, by itself, was awesome.
And while it wasn't a runaway sales success, it didn't really have enough time to permeate the market. However, it garnered enough "street cred" to be a halo car, which -- as you know -- doesn't need to sell in Cruze-like volumes to create interest in the brand and its other products.
Even then, the G8 was the flagship Pontiac vehicle, and -- when measures against other flagships -- like the current Ford Taurus or Hyundai Azera, it sold well.
But two good vehicles don't make up for a lineup-worth of crap.