Forgive me if this was already discussed, but the address pictured had no value at the time of the original post...now it contains 1 bitcoin...are you loading them as you fill orders? Are the private addresses really destroyed (save the copy in the coin)?
Yes and yes. I load each coin once I have confirmed that I haven't rejected it for some reason (such as ruining the label while peeling it - which happens a fair bit - and there's only one for each address). Of course, only the public addresses are needed for this process. I have a little app that helps me load them in large batches using the bitcoind "sendmany" RPC command.
The private keys were generated on a fresh OS install dedicated just for the purpose, on a computer that never connected to any networks, and the entire batch printed on sheets of paper directly from that machine. I have since securely erased the hard drive.