Worth listening to sales, sometimes there is value in what they say, and you need them on side - it isn't fun (or good for job security) writing great software that they can't or won't sell. The suggestion is good as far as it goes but I would say it isn't as simple as that.
Unless you are open source, your dev teams bug trackers should be their area and confidential to them, they may not all be commercially aware customer facing people, they may speak their mind in choice terms about some bug reports, and you shouldn't have to be constantly afraid of that turning up in front of the customer. It isn't just dirty laundry, it's the whole cleaning process and every dirty comment you make whilst doing it.
Then, each customer has their own issues which should be confidential to that customer (and you). Some issues may not be bugs but embarrassing customer mistakes, and customers _will_ (sooner or later) put information into an issue that is commercially confidential, personal information (data protection) or security related. Sometimes this is necessary - bugs may only be tripped by certain data, and it isn't the customers job to determine the general case, it's your job when investigating. Support and dev need to understand that issues are private to a customer, but also sales so they can explain it positively to prospects: "can we look at your issue list ?" "we can't show you customer reported issues because we treat them as confidential to that customer - we believe customers should be able to report exactly what happens which may include their data, rsther than be required to create a general test case". Customer issue lists are not a concern of sales but rather account management - the customer account manager may be in sales, but if so it is a different role they are doing.
Then you (maybe) have general issue list(s) that are visible to all customers - effectively a dynamic tracking view of what will be in the release notes (see below). You need to re-create issues here from the customer reports - not just blindly copy customer report - and really these should be general cases not just what the customer reports. E.g. customer reports issue with Web UI display of account named "P&O", you establish it's an issue with ampersand, and what you report to all customers is that there is an issue with ampersand, otherwise you risk reporting too narrow a bug and exposing customer confidential information. Not every issue will make it to this list, only if it is of general concern, and issue that affects a configuration only used by two customers who have already been informed has no relevance here. I still see little value in this list being public beyond customers, but it should be expected that it might become public at some point (possibly via a customer) and information in it should be written accordingly, at very least it is available to all customers. For these reasons sales may sometimes be involved in decisions as to what goes on this list.
For betas and dev builds etc., maintain separate lists and give access only to those customers who are running those versions, make them feel special, but also your SLAs etc. will be different for non-production versions and this helps keep that clear.
Finally, release notes - fixed issues and known outstanding issues. If you provide public downloadable demos, or you provide demo installs to sales prospects, then these need to come with release notes, so these documents go (at least) beyond your customers. For that reason you don't just dump (any of) the lists above into the release notes, each issue needs to be vetted for inclusion (see above for relevance, plus you want to inform not overwhelm) and rewritten to show your customer service in a positive light - this is effectively part of your shop window.
I would recommend trying to get sales (and maybe marketing) involved in reviewing (and editing) release notes, they are technical documents that need to be customer relevant and readable, sensitive to commercial needs and priorities, and hence need some sales/marketing input.
Yes, really, honestly, and my reasons are:
[stated reason]: This needs your (sales) input because we've written it as a technical document and we may not be aware of all the commercial priorities and sensitivities and may not have used the best customer-facing language, you guys are better than us at this
[real reason]: I want to make sure you sales guys have read the ****ing release notes and aren't out there demoing year-old versions and apologising for bugs we fixed months ago
If they don't want to engage with this, then a) you tried and b) they can't complain about it later...