It's sad to see the end of this project. I imagine those working on it have poured a massive amount of time and energy into it. Hopefully there are ways for creations to live on in other productions.
I don't know anything of the game, but I am touched by the more personal statement and the complete refund offer. That attitude is very respectable and not something you'd expect to see from the giants in the business even though they could afford to do it more easily.
Kudos to Epic Games for their focus on players and their personal response.