I don't consider Alex the most experienced dev, but I do think he is one of the most passionate people I have met. He tries for the stars and often times falls short, but so did the Wright Brothers, Tesla, and Edison.
Even the best of startups fail. I think the rate is like 1 in 100 that succede. I hardly think we should hold kickstarter projects to a higher standard.
I have contributed over a thousand dollars to Kickstarter projects, and I don't consider any of those dollars, purchases. I consider them donations. Some projects will succede while others fail.
Don't let the legal system make an example of this.
Prosper is still a great company, but legal quagmires made it much less than it's original vision. I'd hate to overly regulate kickstarter.