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I think people need to stop comparing ratios to their porn traffic.
First, Fleshlight is not a instant gratification buy. If you put it in front of surfers looking for instant gratification, you'll fail miserably. To throw a banner ad up on your blog or TGP and expect it to convert and bring in as much money as an instant gratification porn site is just plain silly. It's a different type of traffic that you're looking for.
With that said, Fleshlight should be used with specific traffic. Traffic that involves ordering things such as DVDs, sex toys, and so on are great. I'm sure it does well in members sections of paysites as upsells. It also probably does well in newsletters.
But picture your average surfer. He's got his dick out, he's looking at porn videos, and you think he's going to stop, pull out his credit card, and order a sex toy that will arrive in a week or two? I don't think it's Fleshlight or NATS that is the problem, it's people trying to market a product like that to their instant gratification audience (note that Fleshlight has marketed themselves as a product that can sell to that type of audience and should get some of the blame).
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