Well, regardless of if the game itself appears, the metagame has been a resounding success: This project has induced varying degrees of madness in nearly everyone who has come into more than casual contact with it.
Damiac, you are missing the point: There are those of us who long ago made peace with the fact that our money is gone, and are uninterested in revenge or even justice. It's a sunk cost to me, spent over 3-1/2 years ago. What I want instead is to ensure that if Josh does not finish the game, someone gets the opportunity to do so instead of TWS disappearing forever. That someone could be a publisher; it could be an open source community; hell if he wanted to give it to me as the third-most-involved person in the project behind himself and Fenicks, I'd take it, if only to be a caretaker for it until I could find it a more suitable home.
Whether TWS arose in fraudulent circumstances or not is simply irrelevant to this line of reasoning.
Suppose as a hypothetical that there is no working AI behind these latest videos, that this is still a scripted exercise. There is still, at minimum, a very pretty UI interface in Unity, a truckload of lore and flavor text, a metric fuckton of art and sound assets, at least some mechanism (the Locations' stats vary from turn to turn, Challenges progress and resolve, so something minimal is going on there even if the main AI is absent), and enough remaining discussions and posts from Josh to the official forums and elsewhere to determine how the game was intended to work.
It doesn't matter whether Josh created these things with a pure heart or with nefarious motives. The fact is, they demonstrably exist, and someone who had all these things, and knew how to code the AI, could finish the game. It might take a very long time, depending on whether it was an individual coder with a day job working on TWS on the side (which for all we know might be the current state of TWS) or whether an actual publisher got involved and threw a lot of resources at it.
Suing Josh would instead tie all these assets up in court. What happens then I do not know, but I do know while they're trapped Josh likely wouldn't be able to give or sell them to anyone, and it's unlikely he'd work on the game while waging a court battle over it. So at the bare minimum, suing him will only delay the game at best, and (more likely) finish off any chance of it ever existing as a finished product at worst.
So it's better - at least for backers more interested in maximizing the chance the game eventually exists in some form than in getting revenge/justice - to simply wait and see what happens, go on about our lives in the lengthy intervals between videos, and scrutinize said videos (or not) as they do appear as our own level of interest moves us (or not).