I also wonder how will they make this game a reality. I have no doubt about succeeding, but they are planing a lot of things, lots of classes, a huge world map (with lots of places to visit I assume), different races, C&C. And all this from 3 million? If they manage to do that, why are we having games like Shit Effect and Derp Age 2 which cost a lot and are shit.
Content creation is probably much, much more expensive for games like Mass Effect and Dragon Age. Cut scenes, everything is lip synced and motion captured, 3D environments with details that have to look good close up from any viewpoint, extremely advanced game engine.
As for why we have Mass Effect and Dragon Age, that's what (most) people want.