Er... how is it safe to assume they will have a near-finished game when they run out of money? How is it safe to assume that any publisher would take their word when they say "the project is almost done, we just need a little more money to finish it!" given how inaccurate/common that situation is in this industry in combination with Silicon Knight's past? They are now promising a larger game for less money, and they're operating out of Canada where 750k doesn't go very far for game developer salaries. Even if they just remade Eternal Darkness, gameplay and all, for 2013 it would cost more than 750k to make.
Combine that with the fact that this is a developer with a shady past and fairly convincing ex-employee accounts of squandering tens of millions of dollars on their previous projects and it becomes even less likely that this 750k will result in anything approaching a finished game.
I've contributed to a dozen Kickstarters so far and felt fairly comfortable about the chances of those Kickstarters resulting in something approaching what was promised in the original pledge, but contributing to this project seems akin to burning your money.
It's relatively safe to assume so.
These guys want to work in the videogame industry. They create videogames, it's what they do and what they have been doing for a lot of years. They're already having difficulties getting publishers to make deals with them; now they are resorting to what is pretty much their last opportunity, that is, having the public fund their own games. They are not going to blow the last chance that they have at survival in this industry (let alone do something retarded like running away with all the money). At the very least we can be pretty confident that they have the right intentions when it comes to the making of this videogame (just to shoot down all those inflammatory and completely unreasonable comments like them running away with the money or using it for the bail of the guy who got arrested recently).
The most you can say is that, even though they have the right intentions, their track record shows that they are not to be trusted when it comes to actually going through with said intentions. And that's fair. But the fact that this is (again) their last chance at survival in this industry means that these guys are being extremely careful with what they are doing. You can be sure that they planned this $750,000 goal down to the last penny, and that they are confident in their ability to make this game with said amount of money. If they don't, it's more likely that they will release the game with a few bugs here and there or with a couple of chapters less than what they had initially planned, rather than scrapping the whole thing and taking our money.
Is it possible that this is some sort of scam? Could they have, for example, reduced their goal for kickstarter just to get some money (*any* money), use said money to make the barebones of the game, and then try to make a deal with a publisher to allow them to finish the game? Sure. Anything is possible. But these guys are not going to shoot themselves in the foot. They know that if they try to scam their fanbase they are royally screwed. No one trusts them as it is, especially publishers; but to screw in such a way the one group of people that can give you one last shot in this industry would truly be the equivalent to putting the last nail in your coffin. They are just not going to do that.
Regarding why they would be able to make a bigger game now with less money than what they were initially asking for a single episode, they already explained that they found some sort of funding somewhere else, just not enough to make the whole game.