For software products, it's pretty hard for them to tell the difference between a simulation/rendering and the real thing. If I show a finished UI, it will appear to be fully functional and polished, but there may not be any back-end at all. I often create a fake persistence layer to allow for faster development of the UI. How would they be able to tell the difference? And it's actually not violating the rules at all right?
I also think that delivered software is a product. I doubt kickstarter would allow SaaS at all (it would be interesting to see what kind of products get rejected during the submission reviews).
There are a bunch of obvious technical mistakes in that, not least of which is that you're not effectively buying a WeMo and getting the bulb for free; only the more expensive master bulb will have WiFi support and the rest will talk to it over much cheaper 802.15.4 mesh networking.
From the comments in the linked blog, there was this comment "The new guideline prohibiting renderings applies only to projects categorized as Product Design or Hardware. Other categories, including Games, are not affected."
