The "minimum viable product" is part of the development process. If you are already at a certain quality and choose to make it worse, this is something else. Enshittification or just greed come to my mind.

Clearly it's just the start and end state of product development: make an MVP—the very worst thing people will buy, start to gain market share while you improve, reach market saturation, merge with competition, "value engineer" back to MVP—the very worst thing people will still buy.

The “minimum” means minimum price. There is a big market for the lowest price product in case a customer wants the lowest quality product because they only need to use it a couple times or for a trivial task.

Buying a cheap tool at Harbor Freight first and then going for the more expensive tool is a good way to save money.