Isn't the problem with that whole argument that, in reality, the vast majority of startups do not succeed?

I'm glad that Kickstarter is trying an alternative business model, but I do worry for their long term viability/growth prospects. People reading HN probably understand concepts like investment and lack of guaranteed rewards. People who sign up to a $1,000,000 project for what looks like a really cool game that their friends showed them, and who then get told they weren't really buying anything but a possibility, might not. And in the long run, whether or not those people should have understood their role, they are the only ones who get a say in whether they open their wallets again in the future to support someone else's project.