I'm inclined to agree on the specifics of this case, but not in the abstract. Kickstarter and other crowd funding entities represent an interesting dearth of case law. Here, consumers aren't necessarily protected by either consumer laws or by investment laws.

Considering large corporations have purchased Kickstarted projects and major films have been produced with crowd funding, these are very important issues to begin sorting out.

The amount at issue in the suit isn't just the dollar value to make restitution to the victims (which itself might be more than just a straight refund), but also the $2k per offense civil penalty under the applicable consumer protection law. Depending on how offenses are counted under that law, the penalties may be more significant on their own than restitution.