Fines for undelivered Kickstarters

I would argue against the "buyer beware" mentality when it comes to Kickstarter. If you put your Kickstarter up knowing that you don't intend to deliver, you're a con and should be fined. If you put your Kickstarter up and you know that you might not be able to deliver, then I believe the mentality ought to be "seller beware" or make the public fully aware of those risks instead of just going "yeah, we're gonna do this". If the public are made aware of the risks then that's the point where the whole "buyer beware" thing comes in. The reason your investment is at risk should not be "whoops", it should be something more concrete (prices for materials shot up for some unknown reason or the project did not scale well with the sheer number of backers).
As a consumer I am not aware of the risks behind printing playing cards. Given that they are practically ubiquitous to the point where custom decks can be ordered via the internet it would be reasonable to assume that the project is, by default, low-risk. In fact, their "risks and challenges" section details only delivery dates as being a potential risk.

Please note that I am stating the above sentence as an example to explain my stance on the litigation, I have no judgement for the actual project as I did not back it and do not know the ins and outs concerning it. With the information I can find, though (can't see the updates as you need to be a backer), dropping off the face of the earth for two years is not a sign of delivery dates going wrong, it's a sign of something pretty bad happening. Given I don't know what that "something bad" is, I have no idea if the fine is justified or not.

Not sure how I feel about the whole "we're going to crack down on Kickstarter projects" statement, though. Kickstarter is a wonderful source of innovative projects and if people believe they might just get kicked around by the judicial system over a risky project then I think we'll end up seeing less and less creativity and more and more "safe" projects. As I said above, a risky project is fine, but make the risks known to the backer otherwise you're potentially just fleecing someone.