Everything you said is spot on pretty much. I have no idea why he'd release the server in its current state. Everyone gets that it's not finished yet but it's still no way near a state where it was ready to be released. Plenty of people agree with you though - just take a look at Pali's advertisement topic on rune-server. It's more or less filled with posts saying similar things.
I hope that it'll succeed which is what I've said from the second that I resigned but it's not exactly looking positive and especially not when people like you (who in my opinion is one of the few actual useful and helpful staff members) leave. I can't really blame you for making that decision though.