I diagree with the thesis. An art project like the one mentioned is relatively small. CE projects, which want to ship millions of units is an entirely different affair, usually costing millions of dollars and large teams composed of many different specialities. Even if you did raise $5 million USD you still need a design team and manufacturing. And there's no guarantee of success either. I just don't see Kickstarter…
The real force here is small-batch manufacturing, which has been a long time in coming. Laser cutters, water-jet cutters, 3D printers, and - perhaps more importantly - the technology to enter a credit card number, press a button, and ship your CAD drawings around the world to a shop in some Chinese city where a team of machinists can whip up a thousand units for small amounts of money.
But the way this technology manifests to US consumers is via Kickstarter campaigns.
And, sure, if you want to scale any of these Kickstarters up to millions of units you'll need a real manufacturing team and capital. But, as with software startups, it's easier to raise capital once you've found product/market fit. And here we have the other advantage of Kickstarter: It makes it easier than ever to find and energize a collection of early customers.