Also, since there's a finite cash reserve, these games (SMB, Minecraft etc) actually drain the pool of money available for smaller projects.
You're assuming that finite cash reserve has been exhausted. I don't think that's the case. I think more quality indie games will cause more money to be spent on them.
I've also experienced quite a bit of hostility here, frankly extreme rudeness.
Because you were posting in threads where people were simply trying to create awareness for their games on 8 Bit Funding and not commenting on the games, but on how you found the concept of 8 Bit Funding to be repulsive. It's kinda like if someone else started harping on those developers for using a specific programming language. That's not what those threads were for and you were polluting them. I'm glad you're posting in the correct thread now, since I don't think you're completely off the mark in some of your views on 8 Bit Funding.
Turns out that some of the most hostile posts have been from people who actually have products currently seeking funding.
Yes, because you were polluting the threads on their products! And, honestly, a lot of the people responding in an annoyed manner to you do not have projects on 8 Bit Funding.
Clue for the immature kids: my opinion here has very little bearing on whether platformer #474846 or roguelike #293746 succeeds or not.
Calling them immature kids is not a smart move if you're really looking for an honest and good-natured discussion on this.
Another inauspicious fact: for a lot of these products, you're getting into a space where you're competing with free software, some of which is produced to a surprisingly high standard of production values. How they are able to do that I really have no idea but they do.
Perhaps they live in a richer country and can save up money? Perhaps they're fortunate to have a well-paying job? Perhaps they've managed to save up a great deal of money? Perhaps they've inherited a fortune? Perhaps they've won the lottery?
People have different financial situations. Just because some people are able to make quality indie games for free doesn't mean that's possible for all people.
Anyway, I feel one of the biggest things that could hold back 8 Bit Funding is the "developers paying developers" aspect of it. There has to be some motivation for people that are only gamers to visit such a site. I'd bet 99% of the people currently visiting it are developers themselves.