I saw that project today on Kickstarter and feel weird as well. : )
I mean, apple and oranges OK; but one feel a little sad. Even though this project and mine is conceptually different, this one offers an "Arduino compatible dev board with supplementary code" on the other hand the Little Wire offers a complete hardware / software solution by giving emphasis on computer interface by making the hardware as a transparent bridge, one can thought that "Do i waste my time with contract manufacturing and making my project complicated and hard to explain? "
I mean, as an example, Hackaday posted my "Printf style debugging over AVR-ISP pins!" post but they couldn't get the essence of this project and couldn't explain properly on their post. I'm developing some neat, application specific and somewhat novel usage cases / projects, but is there really a point to develop such projects if i can't deliver what they actually do? I hope someday one will benefit from those projects :)
Also the blink(1) project collected 130k for an Attiny85 + RGB led :) It is cool and somewhat sad as well. Yes i'm overly simplifying his project by saying that but one should get the idea :) By the way i expect Digispark to reach 100k at the end of the month if he goes with this speed.
For the compatibility part, as far as i tell it isn't %100 pin compatible with the Little Wire but he might try to port it.
I saw the discussion on the Hackaday but i haven't enough energy to write a comprehensive comparison post there. Also i don't know if it is necessary or not.
On the other hand, as we talked about here, edge connector thing is not robust enough to put in a commercial product unless you take some strong precautions. Also V-USB based serial interface will consume much of the CPU time and the code space and also it has to be polled with strict timing requirements. He might implement timer based solution for this but i don't know ... There is too much pain to create something "just works out of the box" for his case.
I wish him the best luck :)