I think you're correct... saying that you created a AAA title means that you can compete with major game studios... I think.
However, in my opinion AAA doesn't apply to scope or budget but quality of experience. Super Meat Boy is one of the best games I've played in years and it doesn't come anywhere near the scope of say GTA 5 (which is also awesome).
I don't think anyone calls SMB a triple-a title though... so I'd say wikipedia's definition is correct.
So then, I think the real issue here is aiming to make a game that compete with major studios who have budgets of $50m and employ hundreds of specialized team members.
These devs claim it was a passion project, but then they throw in the towel on the entire concept of running an indie studio after the negative reviews come in. I understand the bankruptcy move, but if I were the founder's shoes, I would move somewhere cheap, take a side job and keep making games on the side. If I still loved the Wolfie project, I would fix it for free and I would find a way to send my KS backers whatever I owe them. I would read every negative review of my game, try to bucket the feed back (something like: legit, semi-legit, ignore) and then fix the game. I would also print my favorite positive reviews and hang them up around the house for motivation.
If I no longer believed in the game, I would build something new but smaller. 13 years is a long time to wash down the drain due to one failure.
Currently I'm trying to make indie games along with my gilfriend. She has no formal 3d art training but has been teaching herself via the internet. I learned Unity and have been teaching myself c# / cg and all the other shit that goes with 3d game development (I come from a python / js background). We will most likely fail hard but I don't understand the concept of quitting when you got into something for fun in the first place.
edit: it also sounds like these guys tried to build their own engine... or something. If they did, that was a bad idea. If they didn't, I don't understand why they had so many issues with collision detection. Haven't played the game though... its just odd to hear that they had major collision detection issues.