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API first is actually right in my opinion. Software is very multi-platform now : if you build the API first and then build the clients on top of that, you can make the clients completely decoupled from the server, allowing you to quickly switch platforms.

Technically, API first is a good thing. I don't know about from a business sense.

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From a business sense you want to ship a minimum viable product as soon as possible. There may be teams that could do this most efficiently via the architecture you describe. I think most will work faster with one less tier.

Shipping an MVP with the most basic UI that gets JSON data from the server is fast and usable.

It was difficult to do this in the past, because browsers could not support the data that returned from the server without a lot of work. Today, JQuery that can present the data with minimum effort.

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