Cool product, but I would want to understands what differentiates your product from other similar ones on the market - ie http://assets.dreamgear.net/sell-sheets/DGIPOD-1537.pdf . Do you offer something different? Do you have a patent? Without strong differentiation, or a very unique niche, it will be hard to justify the $50 cost over the $15 Gamewheel. It will also make your claim of "The First Tabletop Gaming Wheel for the iPod".

Never want to shoot someone's dream down, but you have to be aware of market realities. Marketing this with little or no money is going to be a challenge against a low-priced competitor who appears to have deep pockets.

This being said, if you can carve out a different niche for your product that considers your wheel the one they have to use, or you have better design or functionality. It would be interesting to know what you mean when you say that you validated the concept using SEO only. Have they purchased, or just signed up to be notified when the product is going to be available.