They are a tiny company and they only sold 750 units of this thing. If the game is damaged or stolen, they don't want to be stuck with the loss. UPS is much better at claim handling than USPS as far as promptly and fully paying out damage or loss claims. Also, the UPS rates they charged are actual UPS rates. I checked the label on the unit I received during the initial sale and it was within a few pennies of actual UPS rates.
For 3lbs they could have shipped it priority mail (2-3 day) to almost anywhere for no more then $10 and presumably less to areas in their region or if they used regional priority boxes.
UPS ground for most is going to be about 5 business days. I would much rather take the risk of an item being in USPS care for 2-3 days then UPS for 5; especially for a fraction of the cost. Not to mention they could have gotten these to their Global audience for about $50-$60 by USPS Express instead of the $100+ that UPS was charging.
[Cue the "POST OFFICE SUX" rants]
They also could have insured these for about $1 using a third party insurer.
And signature confirmation is ridiculous and a wasted expense on their behalf; no credit card company (or PayPal) requires it on a shipment less then $250 and it won't help win a dispute on a shipment of this value.
Small business or not they aren't using much business sense.