Because I have built more web businesses than I can remember, I am very comfortable releasing products early. I know how much a product evolves in collaboration with its users when this happens. I know there will be more moments of micro-fail where I see users hating something, being confused by something, seeing bugs that are a bit embarrassing. But it is worth it. In fact it is essential. Exposure and eradication of small incidents of micro-fail hurts, but not that much and while it is small, it is easy to iterate and fix.
I still find it hard to communicate. It could be that it needs to be experienced to be truly understood. Matt Mullenweg just did a great job though. If you are building a web business, read this. Then read it again.