I thought the whole thing was supposed to be free.
Back when we assumed nine chapters would take a total of three years to make, we thought we could release it all for free. But after realizing that it would take at least a decade more (on top of the seven years already) to make the remaining chapters for free, it's obviously not feasible.
When we came to this realization, it was an extremely difficult decision to make. Like all of you, we always assumed the entire game would eventually get developed, but after seeing where we stand and doing some simple math, we realized it was no longer realistic to think that. Instead, we decided that if Chapter 2 happens to be as far as we go, we'd try our best to make it worth the wait.
Regarding closure, I guess it will depend on how people feel individually after playing it. It definitely wraps up the chapter and the storyline involving the Green Isles. However, even though the game doesn't have any "to be continued" caption, it's still somewhat apparent that there's more to be told.
As far as funding goes, I would assume it would be on a chapter-by-chapter basis. This is mainly due to the fact that apart from Chapter 1, each chapter is large and complex enough to be a standalone game on its own. But then again, saying this with words is one thing, and physically experiencing it is another. The future of TSL is largely dependant on how well-received Chapters 1 & 2 are, both by fans and potential financiers.