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"Amanda Peyton believes this category is growing rapidly and there is a growing market for stuff that is too geeky or weird for Best Buy."

This is a somewhat dubious assumption. While the market is rapidly growing, it also follows Zipf's law in terms of interestingness. (E.g. the most interesting product is 10x more interesting than the 10th most, 100 times more interesting than the 100th most, etc.) Because of this even an enormous increase in the number of small electronics products will yield only a very small increase in the number of products that would actually appeal to the general consumer. So even if you go from, say, 10,000 products per year to 1 million products per year, the actual increase in products you have to sell that people would want to buy is minimal.

(Incidentally, this is the main reason why I shut down my last startup.)