I came into web development from the film industry. We used to work with a lot of large ad agencies, mostly on national and international broadcast commercial packages.
When I first started in the industry, shooting a commercial meant hiring a large production crew. Shooting 35mm film was still the norm, but over time producers became more open to trying HD video. Despite being cheaper than 35mm, shooting HD was still a large affair with many moving cogs. It wasn't uncommon to have to seek out and find specialized service providers just to have access to the equipment needed, even though we were one of the biggest and well-equipped post houses in Chicago.
The thing is, over a period of just a few years, things within the industry radically shifted. The prosumer market began to catch up. Suddenly we had access to high-def cameras that cost nearly as much to purchase as the former technologies cost to rent just a few years prior.
We started to get requests from agencies to actually shoot ads ourselves to save costs. Our coloring facilities, which used to take up two rooms of our office, shrank to the size of a desktop console. Our offline editors began to be able to add complex graphic work without the aid of our highly skilled online editing team.
It simply amazes me when I walk into a post-production facility these days. What used to be rooms full of bulky equipment and stacks of film is now, quite often, nothing more than a few little desktop computers.
So to return to your question... technology is no longer the barrier to creating high quality videos. The only real barrier is creativity- what you can do with all that potential at your fingertips.
The answer is simple. People respond to them. There's a good reason why companies spend hundreds of thousands of dollars a year creating advertisements.
My question is, given the importance of a good pitch video, why aren't more people making them?
As I've stated in my comments, there really isn't any good excuse not to.
If you own an iPhone you have access to better video than we were shooting just a handful of years ago on projects with budgets upwards of $100,000.
I think the issue is that many people don't recognize the importance of putting some effort into their pitch video. They see their video as an afterthought, when in fact, it's quite possibly their most important asset to a successful fundraising campaign.
A bulk of our business in editing was doing pitch videos for ad agencies. When landing a job means you're bringing in millions of dollars to your agency, spending $80,000 on a pitch video seems like chump change.
Granted, many Kickstarters aren't working on that level, but the principles are the same. If spending a few hundred bucks and some time could land you the funding for your dream project, would that be worth it to you?
For editing, you have Avid, Final Cut Pro and Adobe Premiere heading up the pack. Avid is still the top gun, especially now that Apple redesigned FCP. I haven't used Premiere much, but I've heard good things about it recently.
As for production quality, a good lighting setup will go a LONG way to getting nice footage. Studying basic 3-point lighting will do just fine.
One tool that many amateur filmmakers overlook is the coloring process. It takes some skill to get right, but a good coloring session after you've locked your edit can really add a lot to the quality and tone of your finished video. Many software editing packages come with coloring tools mixed in these days. There are also good stand-alone packages that offer more precise control.
Audio is another prime indicator of production quality. A perfectly shot video with poor audio is just as bad, if not worse, than a poorly shot video. A good shotgun mic or lav mic will help greatly in this respect. Always try to lower or eliminate as much environmental noise as possible and remember to record ambient noise (room silence) to mix in with the finished audio when needed.
I could go on and on, but there are plenty of resources for this stuff freely available. Arguably, the biggest factor to success in a video project is proper planning. You can't fix everything in post.