Keep going! You can't sell something you don't believe in! But don't try to make the v2.0 version before launching. Make sure v1 is something your identified customers will want and shove it out the door.
I think you're right about selling something you don't believe in and/or want to use. In retrospect, I don't think that's the case with our product - but rather me not being able to build it to my expectations. What I realize now is that it's something I can iterate on to get to market fit (and my expectations fit). Thanks for the feedback, cheers!