Okay, so I was partially wrong.
http://www.kickstarter.com/terms-of-useRelevant stuff:
The Estimated Delivery Date listed on each reward is not a promise to fulfill by that date, but is merely an estimate of when the Project Creator hopes to fulfill by.
Project Creators agree to make a good faith attempt to fulfill each reward by its Estimated Delivery Date.
Kickstarter does not offer refunds. A Project Creator is not required to grant a Backer’s request for a refund unless the Project Creator is unable or unwilling to fulfill the reward.
Project Creators are required to fulfill all rewards of their successful fundraising campaigns or refund any Backer whose reward they do not or cannot fulfill.
Project Creators may cancel or refund a Backer’s pledge at any time and for any reason, and if they do so, are not required to fulfill the reward.
So they (kickstarter) do have the legal power to compel refunds. However, it is still left somewhat nebulous for a majority of the projects. Some rewards are cut and dry as to refund/no refund, but I would say most, particularly the 'pre-order' type rewards, are a bit more of a grey area in regards to quality. The one discussed most recently is, in fact, adequate grounds for demanding refunds. However, when it comes to software, one could throw together a command-line rpg in a day, call it the finished product, and give it to backers and probably be just fine legally. So while there is a guarantee you get something, it doesn't necessarily say it needs to be accurate to what it was advertised as.
Still, it is a donation, not an investment or anything of that sort; it's like giving to a cancer fundraiser to get the free stereo for the $250 donation level or something similar to that.