The other side of the author's point is that you have to be careful not to take criticism of your work as criticism of you as a person.
My immediate reaction is that you need to ditch your eternal beta and immediately offer a paid plan. Make the trial really limited. Talk (in person) to potential clients and really try to really sell this thing.
As long as it is in eternal free beta you have no real discernment between casual and paying customers. You have no money to make it worthwhile to you, you have no advertising budget and no credibility. Sure, turning off "free beta mode" is hard, but better to do it now than to work for years (has it been since 2007?) under the assumption that all you need is more features to make a profitable business.
It is a pity that you want to drop this product in its entirety. If I were you I'd either walk away from it to get a break or spend all your effort on the static sales pages, a billing system and advertising until you have some paying customers.
On the website front:
You really do have to get people to try out the dashboard for Timmy. You should have a really easy demo dashboard. If you want to do more coding you could add a Javascript test box where you can talk to Timmy on-line. Getting people to talk to Timmy using MSN is your first hurdle.
None of the features sound compelling. You need to isolate the one call to action that works for most of the potential customers you have personally talked with and put that on the front page. Right now it feels weak - no feature there calls to me. I can already track my time, so why use your solution (tell me). Instant communication and notifications sound like the features of MSN itself - come up with something that really is difficult to solve that Timmy can solve.
But thanks fo the great comment...
I actually agree completely with what you said, especially after reading the thread he cited.