False sense of accomplishment.

Doing what you want to do instead of what you should doing (hint: you should be busy making money).

Inability to triage and live with imperfections.

Not prioritizing business and democratizing decision making.

You criticize the initiative because you judge it doesn't have impact on the product or business. I would challenge the assumption with the claim that a sense of acconplishment, of decision-making and of completion are strong retention and productivity enhancers. Therefore, they're absolutely, albeit indirectly, impacting product and business.

Just because you can't measure the loss of customers who are turned off by your buggy product doesn't mean they don't exist.