You can’t point out that the Emperor Has No Clothes until the emperor puts on his invisible garments. Pointing out the problems before it is too late, is Calling The Baby Ugly. Incomplete software can be “ugly” right now and still be great by the time it is released.
That potential, it might still be fine, makes it difficult to short circuit the story as it unfolds. Software literally emerges from thin air as developers work. Pointing out that the pants only have one leg, the response can be that the second leg is coming in phase 2.
By itself, pointing out the flaws will not short circuit the process. Flawed architecture, wrong technology, and hostile UX don’t matter until it is too late. Nothing is real until it is time to put on the clothes. Calling the baby ugly makes you Cassandra, doomed to be correct and ignored.
The key to the Emperor Has No Clothes is that the truth emerges when the software meets reality. The Grand Reveal is a mistake and totally unnecessary. The baby may be ugly, but the Emperor can only have no clothes when he puts on a whole new wardrobe for the first time.
Iterative delivery short circuits the process because software is constantly going into production. Don’t bet on the Emperor’s New Clothes, send him out with a new jacket and find out if people see it, or the regular shirt underneath.