There is an important side effect of this mentality: you are stuck with a weak foundation. Not only technically but also in front of the eyes of the consumers.

There is an important side effect of this mentality: you are stuck with a weak foundation. Not only technically but also in front of the eyes of the consumers. When you ship a product users build expectations about it. They use in different ways that the ones you might have expected. If during further development you understand that a feature is not desirable anymore (e.g for technical problems with some other super awesome feature) pulling support may backfire. This was evident in each Facebook redesign, or in the new version of Final Cut Pro. Therefore, I think that there is definitely a sweet spot and that this spot isn't "ship it as soon as it works".