Breeding season. That's pretty funny and sad in same moment. Some people make really dumb decisions, many many other suffer of consequences. It's pretty bad, that there's literally no chance to see any game of that sorts come out anymore(maybe someone should go for that niche, hah), unless miraculously those two would make up, which I'd really consider best possible outcome for them, since right now their project and reputation hopelessly ruined.
That is a considerable hit to crowdfunding projects of the same crowdfunding nature, especially when you consider that they were one of the biggest patreon projects. It kinda opens more spot for other similar games, but I don't really think there's much of competition here in first place. It's not like player has to select which project to support unless he's really low on money, which would probably make correct not to support either. Arguably, average user does not risk all that much, as his funding is not very significant on bigger scale, but I do know exactly its the expectations what really suffer, and when reality crushes it, it causes huge discomfort.
Personally though, I take few notes on the stuff I really shouldn't do. Not that I tend to trust other people at all.