It's sad to see this Kickstarter fail, but I think it was to be expected. While Project Eternity didn't have much information at the beginning of their campaign either, Obsidian at least has the street cred and project history which Loot Drop just doesn't have. The name of the campaign, the pitch video with the exaggerated emphasis on old-school, the lack of direction, and the ill-advised stretch goal of "we'll make two games" didn't help either.
I really do think they could get funding for an RPG if they presented it in a more appealing way from the start on, maybe with some concept art, a better name, more lore, or maybe even by resurrecting a much-beloved old IP. Ultimately I believe people need to think "Yes, those guys have a vision and know what they are doing." before they are willing to donate. Especially if you are looking for $1,000,000.