Yes you should. Since when did we get the idea that failing at something (even spectacularly) should preclude you from trying again? Nearly everyone who reads HN has benefited enormously from the mindset that allows entrepreneurs to keep trying.
You just flatly assert that. Is it actually true? I don't know, but surely they've at least got their reputation, with backers and others, from this failed product.
> Failing at something is fine, being naive and irresponsible with other people's money - without repercussion - is not.
You're failing to acknowledge that kickstarter backers know -- or should know -- the risk. It's their choice to back a particular project.
If they aren't lying to anybody, where exactly is the problem?
The assumption being that the Kick starter investors ought to essentially be protected a little against their own gullability.
This of course all serves as a nice allegory of how rules requiring accreditation for some types of investment were born.