Right below this it says that Kickstarter itself isn't liable at all. Basically, if for whatever reason one of these high-minded awesome concept project creators just takes the money and runs, there's really no recourse other than Kickstarter killing their account.

That's not to say people are going to go into this with ill intention all the time, it just means that if for whatever reason the creators can't deliver, or deliver in a substandard way, it's "too bad, better luck next time"

"Kickstarter is not liable for any damages or loss incurred related to rewards or any other use of the Service. All dealings are solely between Users. Kickstarter is under no obligation to become involved in disputes between any Users, or between Users and any third party. This includes, but is not limited to, delivery of goods and services, and any other terms, conditions, warranties, or representations associated with campaigns on the Site. Kickstarter does not oversee the performance or punctuality of projects. The Company does not endorse any User Submissions. You release Kickstarter, its officers, employees, agents, and successors in rights from claims, damages, and demands of every kind, known or unknown, suspected or unsuspected, disclosed or undisclosed, arising out of or in any way related to such disputes and the Service."