I saw the word on some figurines at an antique mall here in Edmonton, Canada (ni88er statuette or smthg like that). And a friend of mine at work says her mother in law uses that word liberally as a description of black people without seeing anything wrong with it, same with "coloured" I've been called that in here.
Well, colored was the acceptable way to describe "people of color" in this country for many, many, years so lots of old-school people still use it...take the NAACP, for example...people have been saying the name should be changed forever, but it has a historical purpose.
As far as the n-word....maybe something is wrong with me, but I just don't feel like the word is as highly-charged as it used to be. When I clicked on the ebay link, I was surprised...but then it was associated with a wig, so my second thought was "who cares..." but I guess if I came upon that when looking for a wig, I would be offended. I'm glad OP brought it to light and others reported it.