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As a customer, it would make me feel very angry if it was presented as a 'second edition' because that would mean I would have to pay again in order to have the corrected version. I would not care, from an 'image' standpoint, about the author making changes and I could redownload the book. But if the author did so in a way that I was suck with an inferior version and had to pay twice in order to get something up to date and error-free? Unforgivable, and unacceptable.
Think of it like an app store purchase for an iPhone or Android app. Minor cosmetic changes, error fixes, upgrades and improvements? These are made all the time, and customers simply re-download the app. Major changes so that it's pretty much a whole different app than it was when you started? That's when you can get away with calling it 'Version 2' and selling it as something different. But I guarantee you, if you released an app with bugs or errors, and charged people again to download the corrected version, they would ream you in the reviews and imho be justified.
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