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It hurts.
That's all it ever deserves.
It was a beauitful concept like Star Citizen and it still is. Personally I think the major problem that existed was with the community. Making the community come up with ideas for monsters and concepts was actually pretty genius, you essentially get hundreds of free monster concepts ranging in quality and there were some incredibly well done monsters as well as active feedback.
But the problem is eventually it just turned into "I must get my monster in the game and have it get art!" and many people ended up leaving after they got their monster in because that was their only goal
In my opinion a game company in this day and age needs to actively interact and involve it's fanbase. not only does it create brand loyalty, the attention this creates draws more people in that wouldn't have bought the game
But you also have to make sure you don't let the fanbase get too big a hold on the game and I think in part that's what happened. Once that mentailty set in no one wanted to actually do work on it, no one wanted to beta test, bug report, or help out in any meaninful way
That said the game right now is just "Suspended" and I do still believe it can come out but in all likely hood that's going to be many years off