Really cool concept! I guess we have found the lower bound of how cheap we can make something that holds your keys. Good luck making something cheaper than $10.
Two things i noticed:
  1. Seed is generated and shown on the host device. Bad idea for obvious reasons
  2. Password is entered on the host device. Also bad idea for obvious reasons
I don't think there's a reason why both of this couldn't be handled by the device itself - so maybe something for a future update! Even a Jade will be orders of magnitudes more secure, but also 6x as expensive.