First of all, (n-1)! means (n-1)(n-2)...(2)(1). This is clearly not what you want here.
If you count the actual number of iterations it's 0 + 1 + 2 + ... + (n-2) + (n-1). Note that there are n terms in the sum, and that we can pair them off in a way such that the average value of each pair is (n-1)/2. (Pair the highest and lowest, the second highest and second lowest, etc.) If n is odd, you'll have one left over that can't be paired, but conveniently its value is also (n-1)/2. Thus you have n terms and the average of all terms is (n-1)/2, so the total sum is n(n-1)/2.
Now, for big O notation it doesn't matter exactly how many iterations we have -- we just want to know the limit when n is very large. Note that our number of iterations can be written as (1/2)n^2 - (1/2)n. For very large n, the n^2 term is way, way bigger than the n term, so we drop the n term. That just leaves us with (1/2)n^2, but another rule of big O notation is we don't care about the constant factor, so we just write that it's O(n^2).