It is one of the major criteria I look for in good software --- open communication from the developers about updates, and changes; active recent update history.
Some of the most successful software companies such as Microsoft and VMware post detailed released notes that show bug fixes and improvements.
Detailed changelogs are even better.
If you are concerned about ridicule from a competitor -- you can probably point out the competitor hides their flaws by not posting detailed change logs.
Another thing you can do that's less recommended -- is put the changelogs behind a click-through agreement. Require site visitors register to review them.
Keep in mind it's not just customers that necessarily want to see documentation, release notes, and changelogs.
When I am considering buying a software product I want, EXPECT, and demand to see on the product vendor's website: (1) Pricing, (2) Release notes, (3) Documentation, (4) Change logs, and (5) A trial version download, before I even talk to a salesperson.
These are signs of a healthy well-marketed product, that will be around for years to come. If any of these are missing -- warning flags, or alarm bells are going off.
If the software doesn't have readily accessible documentation, or notes on bugs --- does anyone use this software in the real world?? Is the documentation crap??; If I buy this product -- is it going to be a complex pile - have spending hours upon hours on the phone with their support, working out bugs at every corner just to get the product up and running with basic functionality?
Will I need to make a phone call, to blow my nose with this software?