I'd say there are not many BIG bugs in LFS, not many in quantity that is. There are quite a few little ones, but the big ones are the ones that need addressed. Like collision detection, the tire modelling, the physics modelling. I'm not listing stuff that I personally think are bugs, just the big ones that have been said here time and time again. So what happens when they send us an update for every little thing fixed? Setups won't work and we will be back at square one with racing again. So they send us a note, "hey we have an update. We fixed the tire model and it is working perfectly now." Fantastic, it's a few days until everyone gets it downloaded. Now everyone is complaining that their old setups aren't working anymore. So we all spend a month getting the setups back into shape, just in time for them to post another update. This time they fixed the downforce. Ok, here we go again, rebuild setups because changing the downforce will change everything else in handling. Finally get the setups right again and they change something in the physics...... blah blah....
I don't want an update after every little thing is changed. I'd say unless S2 is fully released, then update as many things as possible before releasing the update.