And companies like lovepalz (http://lovepalz.com) and vibease (http://vibease.com, where the hell ARE you in this thread, Dema! I know it's like stupid AM over in Singapore but get on here and market, damnit :) ) are co-opting the "kickstarter look" even though they aren't running as actual crowdfunded projects.
In the end, you don't see a lot of products make it to market for 2 reasons. First, making hardware is difficult, but that's been covered here a bazillion times over. The contextual issue with sex tech is that people are scared to install a damn printer on their computer. Putting their private parts near it? Yeah right. If you can't design a user interface for an OS that someone is comfortable with, something as intimate as sex is sooo far off your damn radar.
I've seen 10s of companies come and go without ever getting a product to market since I started tracking this in 2004. There's a ton of factors that just aren't thought about yet.
If you want to see the state of the industry circa 2007:
That's a presentation I did back then. A lot of the info still holds, though there's many new players in the game now. I did an updated presentation in May, will see if there's video around. Or if anyone wants a presentation at their meetup of choice around the Bay Area, just lemme know.
I'm working on an article about sex tech startups (failed/succeeded, and current) that I'll hopefully get posted sometime this week.
MLNP wants to inspire and stimulate open, healthy conversations about sex and pornography. #realworldsex
Cindy on TED http://www.youtube.com/watch?v=FV8n_E_6Tpc