I love this idea, and really hope to see it beneficial for everyone involved, but I do agree that $10 million is an extremely high goal for such a small time frame.
Regardless though, I've always thought digital media was something that would make a huge profit if sold cheaply. Lower price could equate to more units sold, whereas a high price means fewer people purchasing (especially in the case of lesser known developers). But really, if the only thing you're spending money on is bandwith (no cases or discs), I think you could have fantastic results with an idea like this.