Yes and no. Others have already said 3 times now that the value of YC is not in the money, and I agree with that for the most part. But what Kickstarter does is it allows you to 'divorce' the advisory/networking roles and the funding roles.

There are plenty of people that can mentor but they may not be in a position to fund for a variety of reasons (for instance not being an 'accredited investor'). Like this you could actually hire them to give their advice, rather then to come to them for both money and advice, as well as a network.

So kickstarter may very well spell the end of the incubator, but via a completely different route.

Companies like YC thrive on the scarcity of the combination of people with the money to invest and the time to mentor.

If Diaspora fails the model will likely collapse though, they're a poster child for this model now, they had better succeed or die (figuratively speaking of course) trying.

No going back for them.

edit: and don't underestimate the power of being 'YC funded' for follow up rounds.