The point is that the developers may think O(n^2) is fine because their toy use cases had n=10...100, but then actual users will try to use the software for n=10k, or n=100k, and then either waste their lives working with suddenly slow software, or look for alternatives.
I walked into a case like this the other day. I wanted to do a little semi-collaborative project planning. I found a nice tool, played with it for a moment, figured it has the functionality I need and it's fast enough. Then decided to do the actual plan. Once the number of entries in the system went from 10-20 to 30-40, I started to feel things get a little laggy. 50-60, more laggy. At this point I was committed, so I suffered the tool for couple of months, as its UI kept breaking when handling 100 entries. If I knew this would happen at the start, I'd look for something else. But instead, I walked into a hidden O(n^2) somewhere, that makes me hate the product with a passion now.