Are bugs good for users?

I recently listened to a podcast episode that was discussing if bugs are good for users.

It suggested that bugs allowed for engagement between you and the user.

If someone reports a bug, you can tell them when you've fixed it. This encourages communication, and the customer will feel more connected to the product.

While this may be true, I think that users would prefer applications that just work.

If your application has major bugs, they may just go elsewhere. Maybe they won't even report the issue to you.

Major bugs can damage your reputation with your users and potential customers, as well as affect potential sales.

If you can avoid them to begin with, that's what I'd suggest. That's what tools and processes such as automated testing, test-driven development and static analysis are for.

When a user reports it (if they do at all), it could be too late.