Most people will think its just a silly combination of words, maybe even trying to sound like Snookie. I am here to tell you it is a word, and not a very nice one at that. Schnook is a Yiddish word meaning dimwit.
As most people buying these trendy purposeless toys can be described as dimwits, maybe the name is not such an insult. Maybe it is more like a label saying,"hey you, this toy is perfect for your level of intelligence".
Don't even try to look for these yet, they are extremely hard to find. Of course, only a schnook would be looking for them anyway. :)