Sometimes bugs are only found on live, active sites. If no one put 3.7 up on their production site, then some of the bugs that have been found would have not been found so quickly.
I have 3.7 up on my test site and have not found any major problems (just some problems with some hacks I had written or downloaded). If I did put it up on my live site, I would not anticipate any major problems that would take my site down. I don't think people are 'stupid' to put the beta software up on their live sites, it's just not something I want to do - not so much because it's beta, but because since it is 'beta' and not 'gold', new versions are coming out every couple weeks with a fix and I don't feel like upgrading that often.
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