...yes.
I do contract work all the time where I end up in arguments over how simple the sign-up form should be. Common sense suggests that people that have never heard of your company aren't going to give you all their personal information immediately. Another way of referring to this is "gradual engagement".
Here is a good article on how Twitter gained all its users simply by making better use of gradual engagement:
http://www.lukew.com/ff/entry.asp?1128
