The key to living with mediocrity, releasing software and, hopefully, making money is to figure out which bits of the application you're building can get away with being mediocre, then spend all your time working on the bits that will make your product exceptional.
I still think it's better not to do half-way houses where user experience is concerned: do it well, or don't do it. However, this viewpoint is common and worth considering. The debate is, fundamentally, Apple versus Google. Do you deliver near-perfect products with limited functionality which work extremely well at what they do, or do you release products early and evolve their features over time?
Both approaches have merits. Which one do you prefer?