I would agree with this. High standards result in great products, but not necessarily innovative products.
Restrictions can and do lead to restrictions. Think of all the limited resources in a computer 20 years ago and all the tricks played with memory and registers and bit-shifting and such to push the limits of what the hardware could do.
I'll stick by my argument that self-imposed restrictions can really help people get innovative and avoid the me-too traps of entrepreneurship.