In my opinion, they should be releasing a feature-rich, playable demo before they even start talking about a Kickstarter.
Are you new to Kickstarter? It's about selling a dream and when you sell dreams, demos tend to get in the way. Do you think Obsidian would have gotten 4 mil if they released a feature-rich demo first?
No, I'm not new to Kickstarter.
I'm saying that I think there is a big difference between "hey, we're the guys who made some of your favorite games that you still remember fondly, please help us raise the money to make another game like those ones" and "hey, we haven't actually made a game before, but we liked the same games that you did and we're going to try and make one that's a lot like all those games, please help us raise the money to do so. Did we mention that the game will reactive and let players make choices?"
Obsidian's feature-rich demo was Fallout 1 & 2, Planescape: Torment, Icewind Dale 1 & 2, KOTOR 2, and Neverwinter Nights 2.
These guys at Nectar are selling a dream, but who the hell are they again? Oh, two guys with game design degrees and no actual game development experience. One of them plays games and broadcasts it on the web. Big fucking deal. When people have seen and loved your work, you don't need a demo reel. When all you have are big ideas? Well, let's see if you can do more than talk and write design documents.