Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
I haven't used that specific one, but I've tried (and received as a gift) other similar products, and they mostly work as a novelty. The sound is generally terrible and they're not very reliable. I wouldn't buy it without trying, especially not at that price.
 
The pillow idea is interesting because I hate trying to rest on a pillow with earbuds/earphones on. Sound quality would be the issue, though.
 
I played with one like this at one time (maybe the exact model?). I do not recommend it. Just get some nice powered speakers, like the ones you hook up to PC's. Or even just some cheap ones, this pillow sucks, and you can't really control your ipod with it, just the volume or the crappy radio.

IMHO
 
I have one I got from Linens N Things as a gift. It was $10. It works well and the sound is a non-issue really because it is in fact something I just fall asleep to.
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.