Opening 2 paragraphs from wikipedia,
Worse is better, also called the New Jersey style, was conceived by Richard P. Gabriel to describe the dynamics of software acceptance, but it has broader application. The idea is that quality does not necessarily increase with functionality. There is a point where less functionality ("worse") is a preferable option ("better") in terms of practicality and usability. Software that is limited, but simple to use, may be more appealing to the user and market than the reverse.
As to the oxymoronic title, Gabriel calls it a caricature, declares the style "bad" in comparison with "The Right Thing". However he also states that "it has better survival characteristics than the-right-thing" development style and is superior to the "MIT Approach" with which he contrasted it in the original essay.[1]