Logically it should be a good thing, but yeah, some readers WILL drop a series if it updates too frequently, and it's more a tecnical issue with the site than them not liking updates (as in a page everyday, or 2 pages every day) mostly because they have e-mail notifications turned on (so they know when other series they like update), which can really lead to spamage if you follow a daily update series.
There are also some readers who just don't like not being able to stay caught up and will drop a series that updates too often. (again, we're talking daily and daily+ updates here, not once or a few times a week)
Overall though most people like updates, even more points if you're consistent in your schedule.