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Quirky (http://www.quirky.com/products) has released Wrapster, an US$5, community developed, earbud cord management solution. To use it, you simply wrap your cords vertically around the Wrapster from bottom to top to keep them in place.
Once wrapped, pop the earbuds through the two designated holes at the top of the Wrapster to keep them from dangling. Wrapster stands four inches tall and is constructed of bendable lightweight rubber. There are two holes at the top of the device for storing both earbuds and a slot on the base to hold the end of the cord in place when it's wrapped up.