Well, I imagine if they don't reach 40k they don't want to try and manufacture it. As Kickstarter refunds everyone's money in this case it's still a good fit IMO.
Idk, as I state in other comments and as others have said if they do get the 40k it will be nothing in the whole scope of the project. This means they have to have substantial funding elsewhere. And considering that is kickstarters purpose(at least as i understand it) is to provide crowd funding it seems to be counter to kickstarter.
My issues is companies using kickstarter as a test-bed/proving ground(if it is indeed as you stated it).
I guess it depends on what ones view of "kickstater" is and should be. I personally would be very interested to see if this product goes to market if it does not get funded by kickstarter.
