Quote Originally Posted by Maat Mons View Post
Also, isn't this kind of shapesand?

A jug filled with shapesand costs 100 gp and weighs 12 pounds. An empty jug weighs 9 pounds. So 5 pounds of shapesand costs less than 200 gp.
It's definitely similar to both shapesand and that one psionic metal that melts into goo if there's no psionic creatures around. This item however has the distinction of staying in the form you put it in

Quote Originally Posted by Maat Mons View Post
Hitting an invisible creature with a touch attack is easier said than done. First, you need to already know which square the invisible creature occupies. Second, there's a 50% miss chance, even if you guessed right. And then there's the attack roll itself.

Or is the actual intended use of this item to blind a foe you can already see?

Anyway, I feel this item compares unfavorable to flour pouch (Dungeonscape), glitterstone (MIC), and burning dust (DR334, p49).
I looked over the glitterstone description. It's definitely a more powerful item than my glitter bomb, but it's also massively more expensive.