I'm of mixed feelings about this. On the one hand, I think it's good that they would wholesale cancel rather than try to produce half a game on the funding they might get. On the other, I'm sorry people lost their jobs.
I definitely do not feel the "Wait, didn't you just make a successful game and you want our money AGAIN?" thing. If someone has made a successful game that inclines me slightly more toward giving them money because I have some level of trust they know what they're doing. I rarely back a project for more than I'd be willing to pay for the game anyway, so sure, another $25 or whatever is fine by me.