Let's also not forget the cut content so quickly.
Don't you see the huge leap between complaining about cut content and outright telling the developer "fuck you, your game isn't good enough for me" by cancelling your pledge? Next time anyone asks why it took the industry 12 years to even start working on another Torment game, I'll just link this thread.
Why would you think that's the message sent to the developer, when you request a refund?
Backing such a game is about trust, at least imo. So when a developer doesn't inform you about significant cuts and/or changes, a lot of that trust is lost.
Especially when you're informed only after people find out about said stuff and start asking questions (and arguably try to start a shitstorm).
It just seems quite dishonest.
I think a lot of people would've reacted differently, if those cuts and changes were communicated openly and earlier.
So a refund is good solution for both sides. Disappointed backers can get back some or all of their monies and InXile doesn't lose too much credibility.
Damage control basically.
Also as others already said, I doubt they'll be losing tons of funds.
My thinking is this - crowdfunding is a way to fund things that would have trouble surviving or being made otherwise, and as a way to avoid the penny-pinching and quality-compromising tendencies of publishers, who regularly are more interested in profit maximization for themselves and shareholders rather than the success and purpose of the product in itself. It replaces the shareholders of a publisher with a crowd of would-be enthusiasts, as the main financiers of the endeavor in question.
Most essentially, the backers becomes the financiers, and instead of profit, what they are looking for is the product for the purpose of the product itself, rather than monetary gain. The mutual understanding between the developer of the product and the backers is that this is the goal of the developers as well - not to make a profit, but to keep doing what they want to do, what they want to work with, having been paid "in advance" based on the implied promise of a given product. Monetary incentives essentially fulfilled, this allows niche products to be produced, rather than having to reduce products to the most profitable lowest common denominator in an effort to hopefully secure funds for another project.
Not understanding any of this isn't just something inXile is guilty of, but many other Kickstarter projects, but it is in no way less of a betrayal of trust. This much has often been said to backers that themselves do not understand this relationship, that they are backers financing a project, not customers buying a product, when the projects start breaking down. On a fundamental level, I think that no backer is somehow entitled to a refund any more than the shareholders of a bankrupt publisher, unless there can be proof of malicious intent and thus be a legal issue. However, that's an issue of legality, not morality, as many grassroots capitalists playing the stock-market game or unscrupulous swindlers can tell you.
My point here is that inXile clearly haven't been treating their backers in the way they should've been;
as actual fucking financiers of their actual fucking product. They are, on at the very least a moral level, obligated to tell backers what's going on, and keep them updated as to what has been cut, why, and how. This has
clearly not happened. I would be much more fine with inXile saying "no refunds" - which is completely legitimate from this perspective - if they had done that, because the money that has gone into the project is spent, it's not there anymore, it's gone into the project, as funding is wont to do. Just ask any publisher with a failed project out there, that ended up pulling the plug rather than fall for the
sunk cost fallacy.
InXile has essentially treated this as a sold product, and their backers as run-of-the-mill customers, and as customers, they need not be informed of the product before purchase (which is a terrible market practice in itself, but all-too-common), and have treated their monetary windfall from the crowdfunding as revenue that they themselves have invested into projects. Now they're acting with flabbergasted surprise when people are upset that the original pitch came out as dust and money have essentially vaporized. Backers financed a niche product, putting money up-front for the development of that product, and they're getting a mass-marketed consolized game with all the caveats of a publisher attached that is far from what was promised, and meanwhile, mental midgets are trying to make comparisons to how things "are always cut during development" or "things were cut from Planescape: Torment, too", or "the game might not suck anyway", or some inane argument that is completely beside the fucking point.
The worst part is that without both insight and feedback, the backers lack the economical and corporate-political clout to actually do anything about it, and inXile is free to do this shit again. Hell, the vast majority of the crowds that have been funding this are still blissfully unaware or uncaring, many have even forgotten that they backed this to begin with, meaning that the fallout isn't even likely to be very major come release. All that can be done is to vote with our wallets and be hesitant to back in the future, and as with all these forms of products for what essentially is niche products (I am sure they console version will pay for itself, but it won't be a huge success by any means), they're kept alive by fans and enthusiasts, not just momentarily, but for years to come, and it's enthusiasts that drum up interest for crowdfunding and become ecstatic at a pitch. Take that away, and all inXile has done is shoot themselves in the foot with a 12 gauge shotgun.
I'm sure they'll be around for years to come, but without a fanatical fanbase of enthusiasts, going more and more for mass-appeal mediocrity, where will they be, and where'll their crowdfunding be? Fucking nowhere, that's where. And major publishers and developers sure as hell aren't going to get on this train, because the costs/profit ratio isn't high enough - something that shouldn't concern enthusiastic workers at a relatively small company that depends on crowdfunding of niche products, but it's everything, the world, and then some, to corporate shareholders whose only contribution to the industry consists of owning stakes and that make all their money based on post-production sales and revenue projections.
Fargo and inXile has behaved no different than Activision, Electronic Arts, or [insert satanic overlord here], and while I'm not going to make it some personal crusade to see them shot for it, they should absolutely be ashamed of it; but they're clearly not, because they're just continuing the cult of silence, in regards to just what content has been cut, the state of the game, and how it relates to features and aspects of it that has been mentioned not only during the pitch, but as part of marketing material and interviews.
I missed out on a raffle for a free key for this game. 
