Kickstarter projects are often lofty goals to make an app that people think they can build in a few months, but they forget the "take a wildly pessimistic guess and then double it" rule of estimating software costs. Project failure happens. A lot. About 70% of the time in fact (where "failure" means over-budget, or late, or not to specification, etc. Not just undelivered).
Sidenote: The update mentions spending "countless dollars". If there's one thing I know about money, it's that it's eminently countable. If the project starter has spent all the Kickstarter money he should know exactly where and on what. Whether he chooses to share that information is up to him, but implying it's all gone and he doesn't really know where should be ringing alarm bells at Kickstarter HQ.
You are right, peoples who spend money believing them needs to know what happened to their money. Founder says he learn a lot from this project, but peoples didn't fund this project for his Entrepreneur education, they spend it for the product they told will be available one day. I don't think its that difficult to launch the App they planned with that long time period they took (1 and half year)
Sidenote: The update mentions spending "countless dollars". If there's one thing I know about money, it's that it's eminently countable. If the project starter has spent all the Kickstarter money he should know exactly where and on what. Whether he chooses to share that information is up to him, but implying it's all gone and he doesn't really know where should be ringing alarm bells at Kickstarter HQ.