Group buys are almost mandatory for individuals due to the lack of funds required to do an in stock run. It is already an investment to do a GB that isn't a trash project, with prototyping and logistics in terms of sending units to reviewers/content creators (this is optional but really helps selling the 50 or so units that an individual may run) and if something goes wrong that's even more money that's spent, often leading to a runners losing money on projects. It's just too much to ask a person to pay upfront.
How is it too much to ask that someone wanting to undertake a business venture involving thousands of dollars not create a registered business and take out a business loan to acquire capital? That expectation exists in every other industry. If an enthusiast doesn't have the initial capital to make their design a reality, they shouldn't come crawling to the community for funds; they should go to a bank.
You don't just see group buys/crowdfunding in our keyboard hobby, however. Kickstarter, Indiegogo, and other similar sites have items or goods funded by crowdfunding for other hobbies and industries(video games, clothing, movies, you name it).
We've seen success stories from crowdfunding, we've seen disasters, and everything in between.
I love in-stock products, but just taking out a business loan end ending up with too many in-stock products versus running a GB can also be a problem and cause even the best vendors or businesses to go under, even if a business does their research and gauges interest the best they can.
Say an IC is run for a keyboard, and 500 people state that they would absolutely buy the keyboard. Instead of running a GB, the vendor takes out a business loan to buy 300-500 keyboards, hoping that the interest was genuine and based on whatever market research and projections they did. That vendor only sells 100 keyboards out of the 300-500 they decided to buy because of the IC. They expected to sell more, and now they're left with in-stock products that they have to sell at cost, or more likely, at a loss. Now they're essentially screwed and have to find ways to get the rest of the money to pay that business loan back.
I understand why GBs happen. Runners want to know the exact number (or as close as possible) of individuals that will buy that item, or specifically, put money down for that item. Yes, there can be cancellations, but GBs can give you somewhat realistic expectations of what you're selling in terms of how many you'll sell. If 300 people buy into the GB, you have an actual number (as close as possible) of units to buy. This isn't assuming the costs it takes to prototype, design, and so on.
Also, there are the passion projects like what was said before. There are some GB runners that simply want to create a product and do not care about making money off of it and very likely will be losing money. For those GB runners, a business loan may not be feasible (and also, business loans may be different in other countries. It may be difficult/impossible for someone to obtain a business loan in a country outside of the US versus someone living in the US).
What you said about "letting random individuals that have little experience" run GBs is absolutely true. We all know that the chance of some delay or unforeseen circumstance happening during a GB is basically guaranteed, even if it's a small delay (or a worldwide pandemic), and if someone inexperienced runs into those issues, it could be a disaster. Of course, experienced GB runners can also experience disasters as well, but it obviously makes sense to believe that an experienced GB runner will know what to do more than an inexperienced runner.
I believe it also comes down to the consumer. Understanding what GB/project seems risky, what red flags to look for, and researching before you buy is really important. Does this mean that you can eliminate ALL risks? Absolutely not. Even if all signs point to a successful and well-ran GB, that doesn't mean that no issues will arise.
I don't know if anyone saw the red flags regarding Mechs & Co., because judging by different subreddits, geekhack posts, and various discord discussions and responses, a lot of people didn't see this coming, with some not being able to issue chargebacks or obtain refunds.
I think instead of focusing on GBs being a problem, we should make sure to stress being smart as a consumer, educate on what may be red flags, and MOST importantly of all, strive to improve communication from vendors/GB runners. Making a mistake or having delays, but communicating when those issues happen can go a long way. Yes, there are some things that have to be kept behind the scenes, but perhaps we would be in a different situation if we had better communication from Mechs & Co.
I'm not hating or being critical of your thoughts, CodeCoffee, I just wanted to put my thoughts of the GB model into words.