Kickstarter should rather simply put projects on 'hold' and have a dispute ticket of sorts similar to that of ebay for people to sort it out and figure it out.

In the end of the day it has to be black and white however.. one or the other... the question now is who that side will be? The kickstarter raiser or an outside third party?

It is a great shame to see such a project go down like this and I hope kickstarter is taking notice and not let something slip like this.