I've recently backed a couple of KS print and play games: Aquamarine and Shu's Tactics. Aquamarine received 32,000 USD in backing and the end product is a digital copy of the game which the buyer prints out. KS takes about 8% of that 32,000 but still there's 92% for the publisher, plus none of the manufacturing and distribution headaches, nor any of the cashflow problems of traditional publishing: buying 100s or even 1000s of copies and waiting for them to sell.
Seems like this is a good option for those looking to make a tidy profit with minimal labour and capital inputs. Though it is quite restrictive in what kind of game can be designed this way and what audience it suits, though evidently there is a market there.
I also wonder if 3D printing and laser cutting and engraving will become (even) more accessible and commonplace for production of PnP games like Aquamarine. At this stage it's probably too great a learning curve for most people, even if they have access to these machines, but it still could enable a local business to manufacture in the same way that the Game Crafter manufactures single runs. Ideally this process would need minimal labour inputs and common materials - just load the file, push a button and the machine does the rest - just as it is with these paper PnP games.
This would open up more possibilities for both game complexity and also aesthetics, for example having miniatures and plywood boards, even laser cut and engraved cards. But still avoiding those 3 big headaches: cashflow, manufacturing and distribution (not to mention the time delays that come with them).
I hear where you're coming from, this kind of game is unlikely to appeal to most gamers, but still the backing on KS indicates there is sufficient appeal/demand (perhaps parents buying for their kids) to make it profitable, and that profit is far easier because of the digital distribution. I feel that for a new designer, even one that has a much bigger idea, it's a good way to enter the industry, to develop a name/brand and to get experience running a low/no risk KS campaign.
I like the idea for the scratchy style card though! I wonder if you can buy that stuff (the stuff that scratches away) in a spray can?