The way they can absolve all responsibility from this obvious fraud that they are helping to generate half a million dollars (minus the healthy Kickstarter commission of course) is just plain wrong.
Well, um, yes. Written policies aside, Kickstarter's actual stance in the real world seems to be "we're quite happy to cash in commissions from any scam no matter how obvious (even to the village idiot) it might be, unless someone notices and raises a serious amount of stink so excrement starts hitting the fan, in which case we'll eventually pull the project while trying to look as righteously concerned as we can".
I'm not sure they could do much more than they offer (nobody could arbitrate without error every single project), but their reluctance to act even in the most suspicious cases is certainly not... enhancing their public image.