I've used both the semi-automatic and automatic button makers from badge-a-minit (
http://www.badgeaminit.com/214butmakmac.html). I actually prefer the semi-automatic. We found that we could make buttons in 7 seconds with the semi-auto one, whereas the automatic took 10 seconds (though it was less work).
However, neither of those machines have cutters. I've found that the cutting is often the most difficult and time consuming part. If the Instant Button Machine has a very good cutter, it would be worth it over the badge-a-minit semi-automatic.
I would also disagree that it is only several man hours for 1000 buttons. I figure that people (especially students) don't work at 100% for very long doing a repetitive task like making buttons. If it's less then 15 man hours, you have very dedicated workers.