tl;dr - I'm yet to see a profitable startup where quality and profit run in parallel lines as opposed to orthogonal, but I'd welcome corrections.
I do agree about the market cycle, but I still don't think quality products are the main contributor to it. Not nowadays at least.
I'd think if most startups are trying to acquire market share from big and slow players their best bet would be lower product/service price with less, but better targeted, features. In my view quality doesn't have the highest priority, even though I'd much like it to be the opposite.
Those that may create quality products are usually creating a new market niche themselves and not merely moving a big player out of an existing one.
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