[Umofomia]

I believe this is an article you were looking for (written by Joel Spolsky): http://www.joelonsoftware.com/articles/fog0000000020.html

The gist is that even though most people only use 20% of the features, everyone's 20% is a different set of features. So by creating a 'lite' version of your software, you actually end up alienating a lot of your users.