Check out this thoughtful statement (below) from the contracted manufacturer (via plunderbund.com). A tip of the hat to this gentleman! I suspect that his company's pullout led to the seller's shutdown.

A Statement
My name is Rob Bishop, I am the owner of Binkley Toys Inc. and this is my website.
My company, Binkley Toys Inc. has not manufactured the SockObama in production. (more then one toy)
My company was involved in prototyping the SockObama doll as a “work for hire” manufacturer.
Before the publics reaction to The SockObama doll myself and my staff did not make the racist connection that has been made. Our job day in and day out is to make safe, high quality and fun toys. The idea of making a nostalgic sock monkey brought back fond memories of toys from the past.
After the publics reaction I personally was very surprised at that connection (yes, you can accuse me of being naive) but when viewing the toy again, I could see how people could make that connection. That is sad really but that is the way the world works.
An Update
The update is, that myself and Binkley Toys Inc. will not be proceeding with manufacturing the SockObama toy. As I wrote to several people over email, my company is not just about ‘dollars’ and Binkley Toys Inc. prides itself on it’s social responsibility. Again, we have not manufactured any quantity in production of this toy idea.
An Apology
Through the past couple of days I was hoping to find the ‘mistake’ my company made and I believe the only mistake would have been to keep going. There was no ill will, or negative intent in helping to design this toy. To proceed in to manufacturing this toy and to cause harm would have been the
error. I personally apologize to anyone who found this toy idea offensive and I am sorry I did not make the negative connection myself.
A THANK YOU
Thank you to everyone who emailed well thought out messages stating in a logical manner your displeasure with this toy. I tried to respond to each and everyone of you personally. Thank you for not sending vulgar messages on a first attempt to contact me. To those who decided that my company was guilty before your inquiry, well I wish you strength in your life.
Thanks.
Rob Bishop
Binkley Toys Inc.

Awesome! Wow, business self-regulating itself - acting in a principled manner. Making me proud of my country.

Damn, I feel sorry for David, Elizabeth and Rob, those are good people. Now stop being so paranoid! Not everything is racist and partisan propaganda. It was just a toy, they did not mean to offend... That said, it of course did offend plenty of people, so you did absolutely the right thing sending that mail.

I personally thought it was a very cute and not at all evil toy, and I wanted to buy one until you guys ruined it ;)

I also believe that presidential toys are a great idea and that we should be able to buy them, so I sent them an email asking them to continue making those toys, just make it all look a little less partisan, i.e. they should also offer monkey Bush and rhino McCain. And perhaps monster Hillary :)

Whatever happened to their prototype for a SockMcCain?

Right, maybe they didn't have one :(

Because McCain would have been one very sad monkey - so sad in fact that a lot of monkeys would feel offended.

Among animals I think he best resembles a rhino (not just on the outside), but among all living things Idaho potato is also a very fine match.

Squirrel Hillary? Hmm, I find that hard to imagine. Bottom-heavy? How incredibly sexist!

I'd like to suggest as a replacement, that they make a teddy bear named Bearack Obama, and maybe pledge $1 of every sale to recovery efforts from the Midwest flooding.

Racist or not, I thought the sock monkey was way cooler than the Phineas T. Bluster puppet with strings attached, apparently managed by someone named flub a dub.

Everyone should write to both of these companies and let them know that their responsible integrity is appreciated.

I'm so glad I helped. And I'm so glad they shut it down. Democratic protest does work. =)