Both those methods work because you do the research BEFORE you put in a large investment.
If you're not sure you will enjoy camping, then buying something cheap to test the waters while you do your research on what you will want/need, is a smart move. But, if you already know you love to camp, then buying something cheap will often just result in your disappointment and an immediate upgrade.
My rule is: if I buy the cheap version first, I don't upgrade until it breaks, etc. and I use it as much as possible. I did that when I decided to get into photography again - rather than buying an expensive dSLR and multiple lenses only to find I didn't enjoy it, I bought a P&S with manual setting options. I used it every single day until it broke. THEN I moved up to the dSLR and lenses knowing I'd enjoy it. During the time I had the P&S, I researched the dSLR and lenses so that when I did upgrade, I knew exactly what I wanted and needed. I have not regretted a single purchase.