Take too long to fix a problem, people gripe; too much time between firmware releases, more gripes; release a firmware to "quickfix" a single problem, even more gripes
I work in an organization where we have specific guidelines regarding version control & numbering so that's the perspective where my comment comes into view: M.m.R.P Major Release, Minor Release, Revision, Patch. Generally we don't have patch or revision releases to the public, but internally it's frequently used before merging back into our Main branch. From my perspective 1.07 was an oddity because it only addressed a functionality issue addressed by a revision or patch. So 1.06.1 or 1.06a would have been what I expected.
I do agree with D-Link Multimedia in that there should be a more consistent experience with software releases. Over its lifetime, the 323 has two "b" releases: 1.01b & 1.02b. At least when they do the "b" versioning, internally they don't have to rename 1.07 to 1.08 (and all subsequent releases that need to get bumped) and the public doesn't have to wonder "is what was going into 1.07 going into 1.08" or necessitate admin commentary explaining where did the 1.07 we were expecting go?