I think we should be careful with all the generalizations.
I agree that stealth mode is usually stupid for the typical web startup.
But there are certain types of startups where it is essential to have everything working perfectly before launching to a wide audience. Things like BankSimple come to mind, in that launching a half-assed 'minimum viable product' of a bank would be far worse to their reputation than staying in stealth for years while they get everything working perfectly. I think healthcare probably works this way too.
If your company 1. deals with people's personal data, 2. deals with thorny legal/regulatory issues, 3. requires an extra level of trust before customers will sign up, or 4. is in an unusually litigious space... stay in stealth until you work out all the details.
But there are certain types of startups where it is essential to have everything working perfectly before launching to a wide audience. Things like BankSimple come to mind, in that launching a half-assed 'minimum viable product' of a bank would be far worse to their reputation than staying in stealth for years while they get everything working perfectly. I think healthcare probably works this way too.
If your company 1. deals with people's personal data, 2. deals with thorny legal/regulatory issues, 3. requires an extra level of trust before customers will sign up, or 4. is in an unusually litigious space... stay in stealth until you work out all the details.