I think they probably do have a product, but it is unlikely to be anywhere as good as they were implying. They also have to sell far more then the IGG campaign, so I think that this is all about locking in distributers/resellers. They probably have to make a loss to satisfy the IGG supporters. If a Batteriser can sort of work at 500mA, it would still be usable in many applications. Might only do 250mA. Who knows? Who knows how much RF noise it will generate at full load? How much problem will audio noise generated from the beat frequency mixing of multiple batterisers make?
If they did get a new IC designed (or more likely, they got an existing IC repackaged to smaller size), they probably need a production run in the millions to make sense. The last thing they want is annoying bloggers tearing the product apart before the reseller lock-in and media hype takes place. They want to have dumb sites that do test such as take a torch with NiMh batteries and show how it suddenly gets much brighter with the Batteriser. "Hallelujah it works! The critics were all totally wrong!". With the right "Changing The World" publicity on mainstream non-technical sites, they could make a big profit on sales even if the device is not solving any problems.
If they are dependant on selling millions, the whole thing can still fail if they cannot lock-in the sales, or if the devices coming off the production line are just not reliable.
The "harder to make then iPhone" comments sound like someone hasn't done the right engineering and that is not a good sign. Production is not the place to discover that kind of problem.