Indeed--that would be my worry. So you set the stone to decay over the course of 10 minutes, at the end of which it's turned to dust and blows away.
Wall of Stone is not, IMO, the correct comparison, even if it's the closest spell in the SRD. You need to imagine a different spell. A spell that created a temporary 5' cube of stone on a single surface would most likely be a first-level spell--why would it be any higher than that?
I'd set the price at the same as a ring of feather falling. Possibly a little more, given the ring's potential cool uses (10 minutes would still allow you to Minecraft your way across a chasm, or scale a castle wall, or do similar feats), but definitely less than a ring of invisibility.
If all the ring was capable of doing was a 5' cube of stone and the stone had a short duration rather than instantaneous I would in theory price it differently. Problem is that there are only two spells capable of doing this and both are 5th level, Wall of Stone or
Major Creation
Major Creation allows you to create no more than 1' Cube/CL of Plant/Stone/Metal things. So you could easily create the 5' cube stone block with this spell, AND it has a duration of 1 hr/level.
I guess if you wanted to get into creating custom spells that are far less versatile to get the lower spell level you can do that, sure.
Minor Creation is 4th level and only allows the creation of plant based materials at the same volumes and it's duration is 1 hr/level.
I guess what I'm driving at is that based on the spell levels of the things that do create matter, and their durations which are mostly balanced to the rest of the game, If you were to drop the duration so a base 10 min and it allowed you to create stone, I would probably put it at no lower than 2nd level certainly not 1st though...
So if you created this custom spell your cost would still be: 2x3x2000 = 12,000 gp. That's less than a Ring of Invisibility which was inflated because of it's usefulness, and more than Feather Fall!
Regardless, the player referenced by the OP was just taking advantage of a new DM getting this ring at 200 gp, there is no magical ring less than 1000gp in the SRD or MiC (3.5) and that is a Ring of Brief Blessing that makes your weapon count as magic & good aligned for 1 round, once per day. Or a Ring of Arcane Signets which allows you to imprint your signet onto things...
At a minimum I would probably make this item at least 10k gp if you created a custom spell, there are just too many cool applications. How much does a 5' cube of stone weigh? A Stone Horse as a magic item weighs 6000 lbs and occupys 5'x10' area, so half that for a stone cube of 5' annnddd 15d6 damage per 200 lbs (3000) + 1d6 per 10' dropped anyone?