I've seen this product is being sold on ebay. Do you think this is legal and that it does not violate adsense TOS? This is the link. http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=180041542820
I'm not sure but it's a very clever idea. Really, though, you'd want to add a few more bells and whistles to it, otherwise the toolbar is a bit featureless.
You buy the toolbar package - put your branding on it, say Mike's Plumbing. In the old days it would be a calendar or a coffee cup. then you give it to your customers and say this is a cool toolbar to make Google easy to access... but just creating search pages as if you had the search option on your website - and generates the same kind of page. Nifty trick - but does Google allow it? Wait and see.