Alex Proyas has more respect for the intelligence of his audience than inXile, and that was with a $27 million movie.
FWIW, I think something else was going on than doubts about the players' intelligence. (I had no role in designing the intro of the game, and the parts that I worked on were all shunted elsewhere, so I may be wrong.)
My sense is that that the rationale was that there was never going to be a mystery on par with PS:T's because of (1) the Shyamalan effect -- when you watch his movies expecting a particular style of twist, as you inevitably do, the twist tends not to deliver, and the PS:T franchise would create certain twist expectations; (2) the Kickstarter pitch already revealed a lot of stuff, and treating it as secrets would seem lame to Kickstarter backers. But I think the rationale was also that it might be interesting to tell a different kind of game where you actually provided the player with the contours of the scenario early on rather than trying to withhold them.
Finally, from a mechanical standpoint, where the "mystery" elements involve extrinsic things (
i.e., things going on outside the player character), it can be a pain to script because if, like, the player doesn't know who the Changing God is then you have to write every dialogue without knowing whether the player has or doesn't have that information yet. This requires tons of variants that are basically worthless because 99% of the players will ask the first major NPC they meet, but for the 1% that doesn't it'll look like a glitch if in the second major NPC dialogue the PC acts as if he knows the information.
Given the generally negative reactions to the start of the game even from people who liked the game overall, I think it's fair to say that the approach was not successful. But I don't think it's accurate to say it's because of negative views about the players.
Incidentally, Kiefer Sutherland's voice over intro to Dark City was like the first thing I ever bitched about in a published review (for my school newspaper), so the reference takes me back. That was a movie that could've been better but was pretty neat in mood, especially early on. Is the director's cut worth watching? (I haven't seen the movie since it was in theaters in '98.)
--EDIT--
By the way, in some thread I saw someone say the game would've been better received if it hadn't been a Torment game, which might be so, but it's a ridiculous point, like saying, "That politician would have an easier time governing if he hadn't made all those campaign promises and hadn't taken all that special interest money." The game only exists at all because the Torment license drew resources and developers to it. (If nothing else, I doubt I would've put in for a job on it.)
That said, I do think that the "Shyamalan twist" point underscores that it might have been better to veer farther from the Torment setup. For example, I know that there was a big issue of making sure the Sorrow wasn't too much like the TTO. At one point, I had this idea that the Sorrow could actually be the Changing God (after all, the Sorrow is described over and over again as mutating/changing/etc., and it might be a neat hiding-in-plain-sight kind of twist), and that the being thought to be the Changing God was the First Castoff -- every time a new castoff was created, it further deformed/distorted the original Changing God, and basically he was trying to put a stop to the process because it really sucked for him (obviously). (Early on, he'd worked with the First until he realized what the process was doing to him, then he was imprisoned, and then he escaped, and has been hunting ever since.) I have no idea whether it was a good idea or not, felt a little Akira-ish, but it was nixed, probably rightly so, as making the Sorrow too close to TTO (although, really, he was more like TNO and the PC was like TTO, but the point stands). (Also, making course changes at the point I joined would be tough.) But it seems to me that the problem arose from having a ~TTO antagonist to begin with, rather than simply some altogether different antagonist, like a ~Irenicus or something else entirely.