As an end user, I can see why people would want and expect a list of known bugs in a software product. Afterall, it just makes complete sense that you wouldn't want to hit a known bug, fight yourself figuring out why, what caused it, how to get around it, am I the only one seeing this kind of things...
On the other hand, working in the software industry, you also don't want to put every known bug out there. From my experience, most bugs that are easily identified get fixed. The bugs that usually get through are obviously the ones QA didn't catch, the one's that 90% will never see, the one's that aren't easily reproduced and therefore hard to fix because the developer may either think they fixed it or never sees it again.
It's a fine line, and both sides of the fence have their reasons for wanting and not wanting it displayed for all to see. A knowledge base is a great idea as well, as it should cover at least immediate bug identifications so that people can find it, send it in, get it fixed or identified with a workaround or something.