I wonder if they're seeding some of the money on their own to make it seem like it's going smoothly, so people let their guard down and think there are others donating so it should be okay.
Don't really see the need for such cynicism. More than an hour into the campaign, they're barely scratching at 20k. That's not a lot at all for what is supposed to be a big crowdfunding campaign and definitely not an unlikely number to reach for a "spiritual successor to Eternal Darkness". There's no reason to think they are using their own money to generate a steady pace.
Regarding their ToS, while flexible fundings generally suck and don't make sense, I don't see anything wrong with the disclaimer that they are not obligated to release a product. Sounds harsh, but in the end it's the only way a crowdfunding project makes sense for the developer. You can never know for certain if a project might not face serious problems during the development period, and if it's end up being cancelled how are the people behind it supposed to pay the money back? If they had a million bucks lying around, they wouldn't need such a campaign to begin with.
Of course, knowing the backstory of Dyack/SK everyone should think twice before donating to the cause, considering the studio seemed to have serious management problems in the past. However, maybe things
will go more smoothly with a smaller team. Or maybe they'll fail miserably because they don't have enough people for such an ambitous project.
In any case, the business sense behind the project seems strange. The collected money is for episode 1 and with these profits they want develop the upcoming episodes? But who is supposed to buy the upcoming episodes, when they give away episodes 1 to 6 for pretty much nothing at this point already?