Maybe. You have to look at how many other customers agree on the "this is nice" and are paying for it, and how many of them would agree on the "what I really need is" and pay for that.
It's common for a basic product to satisfy many customers, who then all have slightly different needs for additional features. Taken to extreme, you end up with Microsoft Word.
On the other hand, you have Spolsky's claim that the #1 way they increase sales is by adding new features.
Finding the right balance is difficult, so it's easy to say that it's a common cause for loss of focus by entrepreneurs.
You're narrowing the focus too much. The article was not about software or tech businesses, it was much more general. I've seen the same problem described in businesses selling poultry rearing products and fashion jewellery.
It's common for a basic product to satisfy many customers, who then all have slightly different needs for additional features. Taken to extreme, you end up with Microsoft Word.
On the other hand, you have Spolsky's claim that the #1 way they increase sales is by adding new features.
Finding the right balance is difficult, so it's easy to say that it's a common cause for loss of focus by entrepreneurs.