That's what I figured. I get that merchant adoption and liquidity are important, but at the same time, you still have to get people to notice that you exist. Litecoin is failing completely at that right now. They can't grow their userbase if they aren't doing anything to get people's attention. And if the userbase shrinks (which seems a far more likely outcome than growth) then they're going to have less liquidity and merchants aren't going to waste their time supporting a coin that no one uses. It just sounds as though they want to do nothing and ride on Bitcoin's coattails.
In all honesty, it seems to me that a cryptocurrency with a $50 million marketcap is important enough to have a lead developer that makes the job his "title role" and all other endeavors secondary.
But I guess working for a semi-famous boss that hates Altcoins makes it hard to say anything other than "development is not needed". If this had been the attitude of Henry Ford we'd all be driving around in fancy horse carriages.