To me, you just did everything right. The idea of releasing early & often is to learn about your market, understand what your users really need and what your product should be.
Could you have done your 'grand scheme' release without the experience gained during those 2 years?
Writing the post, that's what I realized. The problem is that when we had enough experience, we didn't stop to "release often" and it hurt us more than it helped us.