The argument here seems to be that Kickstarter, by hiding failures, is doing a disservice to others who may want to start a similar business.

Kickstarter is a business. Showing failures would be a bad business move, as the author admits; they obviously don't want to do that. On the other hand, entrepreneurs starting a business have a ton of work to do to ensure their business is viable. Kickstarter is doing them a tremendous favor by keeping failed attempts on their site; they don't have to do that! Writing a post that calls them out for not doing more to showcase failures seems pretty misguided to me; the only person served is the budding entrepreneur, and it has potential to significantly harm Kickstarter, as it could induce fewer people to start projects.

I guess I completely disagree with the post's intention.