Personally, I can see this both ways. I know a lot of people (including myself) have been waiting a long time for these, and it'd be sad to lose a reservation after so long. I know this project has been a nightmare for Brandon, and I'm extremely sympathetic to that. I don't mind waiting longer, and I'd be happy to keep my deposit intact and wait for a blaster.
But I also understand Brandon's desire to provide refunds, because that takes the pressure off. Right now, there are dozens of people who have paid him money and waited years with no results. That must be a constant source of stress. If Brandon simply refunds everyone, then he no longer owes anyone anything, allowing him to work at his own pace without any deadlines or commitments.
Brandon, one possible solution is to refund everyone, but maintain the reservation list as it is today. And then every time you finish a blaster, you offer it to the next person in line. If they decline, you proceed to the next one. And then once the list is complete, you move to the Junkyard, where I'm sure they'll be very popular. That way, you can refund everyone and take away that sense of indebtedness, but also ensure that the people who signed up three years ago still get the first chance at them.
Either way, I support your decision. I've been disappointed by the delays like everyone else, but I'm more concerned with how much of a struggle it's been for you. So I'm happy to go along with whatever works best for you.
