It's not that you are punished, but you are at a huge disadvantage. The games that released in the first week had a huge leg up, because they were the only thing anyone could vote on. Garry was hoping, seemingly, that people would release early and release unfinished builds. But that isn't what happened, is it? Instead, the quality games that held off first impressions (not mine, I released early and unfinished, before anyone attacks) have less time to get votes, and less players to be voted on by. Meanwhile, the games at the top are presented to everyone immediately, and continue to grow.
It's cooked, chief. Bad design for the voting made worse by AI sloppers and vote manipulation.