The same reason blatant scams get allowed, kickstarted has a significant financial incentive to allow as much as possible. Why would they shut down a kickstarter that will put $50,000 in their pockets?

How does that possibly fit with your claim that it is against the stated purpose of Kickstarter? Kickstarter gets to define what their purpose is, and their actions are as clear as their words. You'd have stronger ground complaining about Kickstater than this project.