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1) Users will remember that your site was incomplete and will be less willing to come back

2) Search engines may index incomplete pages and cache them and then not refresh their cache for months or years

3) Other webmasters will not exchange links with incomplete sites

4) Directories won’t accept submissions from incomplete sites

Keep in mind this generally covers your “under construction” kind of incomplete sites. You certainly can launch a site and then continually add to it and grow it. Even adding whole new sections. But a site that is obviously incomplete just shouldn’t be set loose in the wild until it is ready to go.

A quality link is:

1) On topic (The page linking to your page is about the same main topic)
2) Ranked well for the keyphrase you are after (In the top 1,000)
3) Contains the keywords you wish to rank well for
4) Has high PR (PR 4 or higher)

I left out high traffic because that is irrelevant from an SEO point of view. But if you’re looking at the big picture that would be #5.