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Earlier quoted context omitted.
Honestly speaking, I am not trying to make loads of money out of iTunes Instant. I can earn 5% of the commission which means it's only $60 if 1000 songs are being downloaded using my LinkShare referral links. Though I do hope I will get the coverage of TechCrunch or Mashable. :)
Even so, you're offering functionality that people have wanted from iTunes for a long time, so you may be more successful than you think. :)
All of these jsonp / iframe based instantizers have to be putting load on servers (probably not in great volume, but still). There's a reason Google had to put special consideration into how to make the ajax-endpoints scale :)
In terms of scalability, YouTube Instant will encounter lots more problems than iTunes Instant. It's full-length video vs. 100x100 artwork image.
Would it be possible for you to add support for App Store searches in addition to music, or do Apple's APIs not support that? If you had that, your search would easily replace iTunes's for me. Nicely done! EDIT: Oh, you have movie and TV show searches. Out of curiosity, what country are you in? Some results that come up for me aren't available in the US iTunes Store.
I am in the US.