minimize the chances of really big and costly false starts
The commercial process is thus geared towards ensuring that reasonable risks are taken given the expectations of rewards at a given point. Given the exploratory nature of their enterprise, it makes sense to prototype quickly and rapidly so as to understand the problem better.
The other significant point about the early user testing is that they built up a lot of understanding about the problem through the tests, instead of relying on interviews and surveys. The scientific studies and research functioned mainly to discover problem areas and suggest solution methods. The early studies also act as a filter - irrelevant or low-impact aspects get cut out quickly.
All in all, a very interesting and thought provoking paper. The final point about needing concrete results to point to when asking for more NSF grants is well made.