Imagine the loss that is generated when projects are frozen, canceled or unused in production! How much profit and growth would a company achieve if all software they produce would to generate transactions in the production! The whole process simply reeks of waste. By insisting on initial requirements, not only are they making the life more difficult for the client, they are shooting their own foot. If these requirements do not result in software used in production by final client (not just deployed so that project can be marked as finished), they are losing money they could earn from charging transactions. By prioritizing requirements based on how late they are, they are making it more probable that these will come to production too late. Talk about waterfall double whammy!