I think people's tolerance of bugs and missing feature's has dropped to an all time low. It's not 1997 anymore. This "ship early, ship often" tactic may have worked at one point but expectations have changed. Especially if you are selling into an established market (which most of us are...)

Also building software for your early adopters is usually a bad move. Typically this gets you a product full of corner case features that these users weren't getting in existing products. Unless it's a huge market you're probably painting yourself into a corner.