If Kickstarter crowdsources funding, why not crowdsource manufacturing, too? Especially considering the increasing proliferation of 3D printing and the like.

I'm sure that many DIYers, hackerspaces, etc., have the ability to manufacture small batches of a wide variety of products; QA and final assembly could be done further up the chain, as a component of distribution.

Ponoko [1] has been trying to do this for a little while now but they're still a long ways away from being mass production.

[1] http://www.ponoko.com/about/the-big-idea