that would be exactly what the theory of project management in software engineering predicts: adding more people to a project that's late will make it even more late. this has been well established since the 1960s if I remember right.Also, if my memory doesn't betray me, he was asking for more money to hire new people on his team? So his development team got significantly bigger, but his updates are coming out slower and with less content? Seems pretty bullshit to me.
of course almost none of the people making these games have the education to know things like these, so stuff happens. and it is a very unintuitive result so hard to blame people too much for thinking otherwise.
all that said, when I compare this game to almost any of its peers, the striking difference is he's still delivering the goods. eventually. that alone gives him the pass in my eyes. even if he's doing it wrong, at least he's still actually doing it.