As far "release a crappy version", it's just a blunter way of saying release early, release often

And the following part "No response, abandon. Complaints, improve" is just the concept of the minimal prototype; also used in "Discovery-driven planning". http://en.wikipedia.org/wiki/Discovery_driven_planning

You seem to be speaking from a professional mind-set, which is perfectionistic. An entrepreneurial mind-set is a little different: why perfect something if no one wants it? Or, as pg says "build something people want". Find out what they want first, then perfect it.