They never said that they would let everyone in at once. 19:00PDT was only a time to open a tiny window for this very thing to happen. They probably had a number figured already as to how many beta keys they were handing out this 1st go around. I doubt the servers actually crashed, this was all planned out to begin with. Once they closed that window they suddenly had a "Server Error" page which is able to come up almost immediately with no download problems. There will be another window soon enough and I'm sure they already have that time in their heads for the next testing phase of log-in diagnosis. Conspiracy!
I'm sure they know the servers would get slammed. But the time-out wasn't due to the keys filling up instantly. I started trying to get a key at 7 PST, and kept trying until I finally got one almost an hour later. This wasn't a fake server crash, it was just heavy congestion.