Having a good working product is definitely important, for one it brings more trust towards the project itself. Members will feel more comfortable with investing in a project that has an physical product. If a working product is not available, then a prototype or a demo is needed that will show how the actual product will work.
Yeah, it is. One thing about having a product is that the coin you are investing in will have usefulness and you will at least be sure that you are investing in something real and the idea behind the product and how useful it is to the community at large and the global population at large is what would make it work. Any ICO without a product is more like investing in a company without anything to show for it, how will you know if the team will ever deliver on a promise if it is empty?
Product is a whole lot important. A lot of investors have ended up investing in empty promises and we all know how that usually ends up turning out at the end of the day. For a project that has product, that shows the team is ready to work, there is a whole lot to watch out for in the future as the coin or token becomes very useful and that is what really makes the whole idea of having a product sensible.