i wont copy and paste a 5-page long email thread i've had regarding orders placed with 'em, suffice to say, the prices are good because you're unlikely to ever get the parts.
Futurlec. Cheap shipping too.In quantities of 100 the prices are $1.05 and $0.60 respectively.
unless you wanted to, say, put -everything- onto another microcontroller. in which case you would try to do the PWM on the attiny2313 and have that controlled via i2c.
and the attiny2313 only has 2 timers by the way, whereas the atmega168 has 3, so you'd have to do the PWM in software which means tons of fun debugging that and i2c communication at the same time. especially difficult when the user wants 8-bit PWM is at >20khz!
also, where are you getting an attiny2313 for $1.45 in qty 1? and a 8-pos DIP switch for $0.75 in qty 1?