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I like it. Would take quite a bit to develop, I think. You could make it into a searchable graphics library type of site, a place where graphic designers could upload and show off their work (heavy bandwidth), or direct it to www.arttoday.com as an affiliate.
I think $1k is good for just the name, but develope it and it could be worth 10 times as much.
I don't see why the bid shouldn't be real. Good domains for graphics is a rare commodity today. First of all, most of the good graphic domains are already being used by various companies and people. Second of all, there are not that many great or good domains, combination of words, in that field to choose from in comparison to health for instance, where you have a lot more combinations to choose from.