Just packing/shipping 5 packages a day would have shown good intent, and would have kept most backers satisfied that better days/more packages shipped would be ahead. I didn't pledge on that one either, but I have been following it with fascination as well. It's hard to imagine those boxes of cards on the pallets, just jammed into a corner with junk piled on top of them! I'm sure that when two pallets show up, and you open one box and see the dozens of cards inside, that can get VERY overwhelming in a HURRY, but still. Any effort is better than no effort, at least in my eyes.
As for Army Men, I would still use my share of amp profits to make things right. I wouldn't be able to sleep otherwise and based on the stress that he claims that he has gone through as a result of this failure, I don't see how he could think anything other than repayment to backers. It's easy to say when you're in different shoes although the second project, even with his brother potentially running the show, with the tons of extra money and updates on multiple sites has to be a tough pill to swallow for the poor Army Men backers.
He'd better do the right thing, and quick. If anyone follows through on the lawsuit, he will be in a MUCH bigger world of hurt, in very short order. Hanfree as the precedent looms large over him.