Being open-source take a lot of pressure off of product developers, the public take over as the developer. Although that tends to be a slow moving machine, plenty has come from it. Just take Linux as the premium example.
I am not a big fan of Bluetooth. I found it to be rather susceptible to electrical noise. I suppose this isn't a life critical application, so it doesn't matter much.
Currently, you can find oximeters at WalMart for about $40. One of the fastest growing product categories in the action sports market is fit tech. It's been bubbling up at CES and OutDoorRetailer for years.
With bluetooth capabilty, it would be good if this device can be used with Nike+ or Fitbit.