In our case, I think showcasing finished work (although far from it) has put us in the position where we can't show WIP gameplay as we've already given the impression that the game's features are completed. As you mentioned, the high and relentless standards makes it all a bit more difficult to manage the expectations from Traction Wars. FE has set the standard that they're very much WIP, so they should have the flexibility of showcasing WIP features (in my opinion).
You guys are doing this for free, in your spare time, you don't owe anybody anything, you shouldn't be in any sort of position. Being free, it shouldn't hold any expectations, but damn, now that I will think of any kind of free game, I will want a game that is similar in quality as TW, because it clearly is possible to achieve it. You've raised the standard for both what a free and/or a WWII game should be like. This is of course from what I've seen in the pictures and videos.
You guys deserve to have the flexibility and the option of doing whatever the fook you want. FE can have flexibility but at the same time it can't because they want to win money out of it as well as they have and will have loads of competition. They have the pressure to make things good because if PR:WWII expands and gets bigger plus you guys release before them, they will not go that far. FE has to start showcasing really good things, what will make them different from you or any other game. Sure it looks good visually, but is it realistic? Does it have any new or special feature (even if it's pre-alpha).
Why would people want to pay for a game when there's 1 game which is pretty good already and another one that will come out and will be top notch, and both for free?
My 2 cents