I don't do it to make people think I'm doing a good job, I'm doing it because it makes me do a better job. Some people actually want to do a good job, not just do the minimal effort they can get away with.
It opens you up for abuse is what I was trying to say. You need competent leadership to implement something like this. If that's a given, it sounds like a great work environment!
In my personal experience though, with mediocre leadership this would lead to a situation where a demo is expected for every iteration and if you can't deliver something flashy every time, you'd get under fire. I feel like this would also lead to management skipping steps in the software development lifecyle, i.e. no testing because "good enough", since it worked in the demo.
