On "making something people want"... You don't always know. If its a cheaper version of something else then - yah. But if its a new category you don't know. eg Nest - turns out people did want an expensive smart thermostat. But wasn't obvious.
We all know companies that have built products that nobody wants. They went through all the planning, product development, market research, production, and the result was nobody wanted it. It's a myth that if you build it, they will come. People have to want your product at each stage of the process.
Very much agree. Make something quickly that somebody really likes, and try and find more people who like it. Figure out what people like about it and expand in that direction. Rinse and repeat, as you expand just keep making sure more people want it.
Of course, some ideas are impossible to execute small and simple.