We did the 2nd Philosophy without all that focus group nonsense.
This
>Build a product that delights some users. Goto market with the same consumers/partners that you talked with initially. Get linear adoption within that target set first, then figure out how to grow exponentially from there.
If you have the time and resources philosophy #2 is great.
Philosophy #1 can be successful with comparatively little effort.
In the long run you probably end up with a much better product so while you may no have "hockey stick" growth right away, your chances for longevity are greater.
Sounds like the people who support #1 are either impatient or don't have time to wait for growth.
This
>Build a product that delights some users. Goto market with the same consumers/partners that you talked with initially. Get linear adoption within that target set first, then figure out how to grow exponentially from there.
is roughly accurate.