But taken too literally, it sends entirely the wrong message to a startup. In some cases I guess you really do want to swing for the fences and bypass everything that's been done in your industry. However, I suspect that the failure rate among those that take a completely divergent approach is pretty high.
Maybe you don't have to match the competition feature-for-feature, but you do need to match them need-for-need. If you don't address customer needs, good luck with your conversion rate. And in the end, a feature matrix is just one company's articulation of what it thinks those customer needs are. Maybe you disagree or maybe you have a better way, but if the same 70% of features show up over and over again amongst your competition, you'd better find a way to satisfy those needs.
In the interest of not posting a tome, I've elaborated on my blog (see profile for link).