I don't see the issue. Price of a company's stock goes up as the company continues to become more useful over time and no one thinks this is unreasonable. Why not same for a product?
And is the same model used by many 'early access' titles, pay less up front for the incomplete game to fund the completion of the future full-price game.
Interestingly, I've seen some devs turn the concept on its head and charge more up front, kind of to say "only buy in now if you are really doing this to support development, and in return you'll get an early release build - but you aren't buying the game early."
I have a hard time believing that's the main motivation