Prices are never going to be matched, and why should they? Things made in China are cheap simply because they have a huge population of people desperate to work, so they can exploit this and pay them a fraction of an American salary and have them work under much worse conditions. Until you are prepared to work for the same money in the same conditions, don't expect the cost of something made domestically to ever be the same as if it were made in China.
People pay lip service to wanting to buy locally made, but they don't vote with the only thing that matters, the willingness to pay more. As long as consumers demand the absolute lowest price, regardless of the exploitation required to achieve it, things will be made in poorer countries with an impoverished workforce.
In a marxist perspective, workers in the developed countries are being exploited too. In a free market perspective, Chinese workers are choosing to leave their farms and go to factories because it's a much better alternative for them, which has raised their wages and standards of living as a whole.
I don't really understand the model. All you are doing is allowing people to host a video file with you and doing some trivial code snippet generation. How do you make money to pay for the hosting?
Please please please do an ePub version. PDF is great for reading on a computer, but an ePub is miles better on an iPad. I'll buy a digital copy if it comes in ePub, but not if it's only PDF.