The video isn't entirely accurate about how this went about. The State of Washington wasn't even what set this in motion, it was the artist who did the illustrations that did. He also got together to release the cards to the backers through a different company called Noir Arts and is working on other projects.
I think it's good that the scammer, Ed Nash, is being fined for this because in this particular situation it WAS a scam on his part. However, I am wary about how this could negatively impact other projects. There are a number of really solid Kickstarter projects I've backed that I'd like to see completed (Bloodstained and Mighty No. 9 are a few that come to mind) and don't want to see people trying to sue just for money. The creators of those projects worked for major companies that pretty much forced them to leave and do things outside of the company. There are also a solid number of indie devs just trying to get funding for their stuff which can be a pain otherwise.
Scams can run both ways and there are a number of people that are using Kickstarter to actually help put together their ideas for a real product that wouldn't be possible any other way. Now, I think we should keep an eye on anything new that comes along, especially if they are being run by a few people. We shouldn't immediately assume and equate a Kickstarter with a scam though, which is becoming the case due to a number of incidents like this.
Kickstarter is not a bad idea, and often, you pay a lot less than you would had a major company took hold of the project, provided the company follows through.
Edit:
This also isn't the first Kickstarter project handler to be sued either, a monopoly style game was the cause of the first.
