Carol and Edsel were both there auctioning the car off, not bidding on it.
The proceeds went to the Carol Shelby Children’s Fund or something to that effect. As for the high price, think about it for a second. You have the first ever GT500 built on the S197. You have a car signed by both Carol and Edsel, you have a paid trip to SVT headquarters to watch the car being built... I'm sure there was more... You put that package together and add it a bunch of people who pay way to little in taxes and make way too much money, you've got at least one person willing to pay. I'm not sure who got it, and don't want to start a rumor, but my guess would be on Leno. They did not focus on the winner so my guess; it was a phoned in bid.
At the end of the day, as Berserker pointed out, it's still stupid. So was the 2005 Mustang that was modified for the SEMA show and sold for $95,000... It may help the collector cause in 20 years but it's going to hurt those still looking for GT's at MSRP and more so those that were looking at getting a Cobra. I'm settling for a Challenger if/when - it's looking pretty good for an 08 model year, late 07 release.
TJ