$170K isn't that crazy. Since when do programmers have to do the whole starving artist routine to get respect? Living close to the edge doesn't make you work any better. If it did, you would have to question companies like Google who give their employees really good benefits. $170k split four (or more) ways actually doesn't sound like much, especially when you consider their location (NYC), and their massive student…
I'm totally positive about the concept, but I always thought one should get motivated on his own, start the project, and beg for money to go further. This seems it's done the opposite way - give us the cheese so we start coding - and donating a video with a chalkboard I feel is a bit too much, for the moment.
Still, I'm very curious about this project and wish them best.