This is far from the first time the comparison is made. People have been comparing MMOs with WEB 2.0 for years.

As I understood it he was saying that you can relax your demands on quality as long as nobody else has that feature. I agree up to a point. Obviously there is a limit to how bad the quality can be but if it's really innovative and unique, it can make sense to release and polish iteratively.
This never applies to whole games though. Even if a handful of games have managed to survive despite being launched horribly broken, this generally spells death and doom.