Given a half million dollars doesn't fund a hardware company with a few dozen employees, it sounds like they have other investors, with deeper pockets, that do want DRM. At that point, the KS money becomes more a liability than an asset, and refunding the money is a wise business decision. This frees them to make potentially necessary design decisions that would upset their kickstarter backers, like migrating from Firefox OS and adding DRM features, that would please their other backers.