Morgan told me he didn't have any significant manufacturing experience -- the couple just went around to various trade shows and chose materials and designs based on what worked for them, and now they go around and sell their cases in retail and at the trade shows (their son was in attendance at Macworld also, selling and demoing the cases). And the Armpockets are impressive -- while they're a little bigger than the standard case, the material is all moisture resistant, the padding grips your arm well while holding your phone securely in place, and there's even something called a "flexi-lock" audio port for holding the headphone cord. The cases are US$22.95 for the regular iPod versions, up to $32.95 for more extensive models.
Obviously, we didn't get to go running around the Macworld floor, so in terms of testing, I can't recommend this case over any other sturdy iPhone armbands out there. Still, it was nice to find some real people behind these often faceless accessory vendors.