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.
Buying a cheap tool at Harbor Freight first and then going for the more expensive tool is a good way to save money.
But "worse on purpose" products typically decrease the quality (and cost to make) without decreasing the sale price to match. It's exploiting the product's reputation for being premium not minimum.