This is your opinion, and I have a different one.
If the money was spent doing a productive development we would get something, and not nothing. If not, is false advertising, and legally, has consequences.
And, when someone sells something, he has the responsibility and must have the commitment to finish this that it is being selled. If the money from investors runs out (as you are saying) he must backup the project with his own money (and assets), the problem is on his side. And if he has no money at all, he must afront this, and work towards fixing it, and if it is not fixable, should say it publicly and be prepared for this that may come next.
Capitalism works both ways dude.
Don't put the problem at our side, the root problem allways was at the developer's side.
- When he had no money: The problem was at his side.
- When he took the money: The problem was at his side (he took a responsibility with the investors, this is, with us).
- Not delivering this that was announced: The problem is at his side.
Yes we took a risk, I agree, but the failure should be explained and he should try repair it.
The money was to another place different from an effective and productive development or...
The developer had no idea of how to do this that was announced, and failed, the problem is that in the announcement, he didn't say that he had no idea of how to do it or resources (right people... for example). or...
Someone else cheated the developer.
Anyway the case is that now he is hidding himself under a rock. Something that is very similar to get the money and run away.
He is who has failed, not us. We trusted on him, yes, we would be wrong trusting, but the responsibility belongs to him.
And now that all people knows that there never will be a final product, why still is being selled? this is a nonsense.
Just take your words and say the same to Ubisoft's or Electronic Arts' investors... and say them that his money never will produce the final product, and behold that happens afterwards.
No my friend, being and Indie developer not makes you less responsible with your investors.
If he is in doubt if he would be able to deliver, do not ask for money then. When you ask for something, you are taking a compromise, and broken compromises, in a commercial, capitalist world, as you say, have consequences. We are getting our consequences already, what is he getting? and don't say me that he is ashamed, he told us nothing about the problems, and the communication is being zero, null, nothing, nada, nil.
In my book, at minimum, this sale should be retired from Steam.