That was their decision and budget to go with. There is no objective marker for what a game should/should not cost, otherwise, if it was a fabled 10m marker, we'd see very few games these days.
Well, when you look at EA with the likes of "where's your 1b dollar ip?" and other pubs dabbling far too much into MP only with MT's loaded into them, you can start to see why they turned down their game.
I don't think Crowdfunding is a bad thing, especially when it's helped so many indie devs. We are now living in a world where it's not just the pubs devs have to lean their shoulders on, but also gamers as well, and I believe that to being a good thing, rather than just being solely limited to the biggest of publishers out there.
There were more projects of theirs turned down by publishers I wasn't just referencing Razor, Ninja Theory only ever got royalties from 2 of their projects in their entire history DMC and Hellblade. Working with publishers isn't always guaranteed to be successful for Independent company's even Obsidian were screwed over in pay with Fallout:NV and South Park: SoT (although they were to blame by singing on the conditions on their bonus for Fallout).
Crowdfunding isn't a bad thing but it is never guaranteed to be success because not all projects will raise their goal, but a big studio like Obsidian having to resort to it just shows what type of situation they were in and they even confirmed that they were nearly out of cash when they did it.