I totally agree, and this is exactly what I do an the method/micro level. Generally I can get something working in just a few minutes but then I spend another 5

I totally agree, and this is exactly what I do an the method/micro level. Generally I can get something working in just a few minutes but then I spend another 5-10 really polishing it up in 5+ small iterations on it (all test driven, so I know my changes still work). Hoff's point was well above that, at the design/macro level. For that I alternate releases between adding features and house cleaning (bug fixes, refactorings, etc). With a sufficiently short iteration time, you can appease both the client/users with new features and the developers by keeping things clean and happy.