You're talking about LIFX, and many were there with you speculating on their chances to deliver. Given that Kickstarter was booming and the failures were becoming more public (and the creator hadn't even delivered his much simpler previous project), it led to this article: http://blogs.reuters.com/felix-salmon/2012/09/18/kickstarter...

And also led Kickstarter to writing the "not a store" post and encouraging LIFX to cap their campaign.

While I hope for more diligence from project creators, I think setting a high bar to eliminate risks also eliminates many interesting Kickstarter successes.