> It still has tiny market reach. Very few people are going to invest the time needed to build a quality user experience for like 1000 users.

That doesn't make sense. Whenever someone wants to build something, they start with 0 users. They don't say "huh, I have 0 users, I'm not going to build a good product".

People who build things recognize that they won't get more users if they don't make their product better. If you have 1,000 users and you want 1,000,000 users, you work more, not less.