The Kickstarter page does a poor job of emphasizing that Shroud of the Avatar is intended to be a primarily story-driven, single-player game experience.
It's definitely not an MMO, nor is it Ultima Online 2. It is not subscription-based. There will be a free trial version which you can install and explore the world, but you need to buy the game in order to advance on the skill trees.
As it currently stands, the game will install to your PC and you can play it entirely offline as a "story-based, classic Ultima-style, virtual world, sandbox game." There is no centralized server that hosts a world that you log into, and the current intent is that you never actually have to even connect to the internet other than to apply patches and updated content.
There is a persistent world aspect in the towns and settlements of the game, which is impacted by all players. When another player sets up a shop in a town, it will appear in everyone's game world, and you can interact with his shopkeeper. When you go online, the persistent world will update.
You designate who your real-life friends are, and once designated as such, you can see them in the game world and interact with them.
I'm cautiously optimistic about this one. I hate MMOs with a passion, but the idea of being able to play parts of the game with a small number of real-life friends is somewhat appealing. I'm not sure how I feel about the persistent world being affected by the other players of the game, as players with more limited playing time (like me) can get locked out the opportunity.
Ultima VII was pretty much the last game that Garriott made without corporate meddling. I am very interested in seeing what he is able to accomplish without having to answer to executives. Ultima IV through VII Part 2 were influential enough for me to warrant a $25 pledge.