I work for a small company (less than 10 employees) that follows a very similar working process. No deadlines, one (very short) weekly meeting. We don't try to stay competitive with similar products. That's impossible with VC funding flooding the market. What we do instead is focus on making our current customers happy. Everyone is involved in support. We follow up with customers when we do launch features they requested, even if that's years later. It seems to be working well. It's not going to be hockey stick growth, but "freedom" for us (the employees) is well preserved.