This is actually more or less how Andy Weir wrote The Martian - and as a product development model it really did build a story of a kind that otherwise wasn’t getting built by the market. There’s definitely something to this.

Consider also the way standups hone material over many performances building up their set.

So there are incremental feedback models in entertainment - but they’re rare.

I guess remakes and reboots are a crude model of iteration as well, although it’s not like each new iteration of Spider-Man is a refinement of the last based on audience feedback - it’s still speculative ‘here’s that same thing repackaged in a way new audiences will love!’ thinking, rather than creeping towards product-market-fit