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Back when I did a lot more web stuff, soft launches were the default way we released features. But I wonder if soft launches are possible or even desirable in the mobile apps world where a lot of press is devoted to "new" (app store sections and even blogs with a recurring "new this week" sections).

Do any mobile startups do soft launches?

I'm guessing here, but did Evernote ever do a "big" launch, or it slowly came out as the note taking app/service?
You're right it's more difficult to pull off a soft launch on mobile if you're also aiming for a feature in the App Store (Apple seems to favor new-ness when selecting apps for features). I've heard of iOS apps launching into a subset of the regional app stores as a way to soft launch (ie. excluding the US store and thus preventing Apple from featuring there before the developer is ready).
This is exactly what Supercell, maker of Clash of Clans (currently ranked 81 in the App Store), is doing with its new game Boom Beach, which is Canada only
Even restaurants do soft launches.

It's important, even as a "smoke test" (albeit in a bigger scale)

I agree. This is a good period to be able to reflect and improve on services, coding and fix bugs.

Doing a soft launch could start your way to getting power users whose input and feedback is valuable to improve the website in the future.

I'm actually working on a new product (for a fairly small B2B niche) and planning to do a soft launch to work out all the kinks before I publicize it more widely. I'm thinking that'll allow me to work out any issues before I risk my reputation with people who might dismiss the product out of hand if they run into major issues. If you have more experience with it, does that make sense or should I forgo that first step?
My gut feeling is that if you have a group of committed potential customers -- i.e., people who trust you and are already interested in what you're building -- then it will probably work. But I'd be wary before you try to get people you barely know to do your beta testing for you unless your product is extremely sexy. The buy-in has to be there before someone will commit to helping you improve a broken product.