Why Chatroulette is more than just penises
mashable.com
mashable.com
$1M is a lot, even moreso in Russia. He could probably more-or-less live off of the interest, or he could use some of it to bootstrap a startup that's less likely to have its traffic vaporize in a month.
2) Extrapolate a little bit. Others have mentioned sub-Chatroulettes. What if Chatroulette added Flickr style tags? Twitter style hashtags? Digg style upvoting?
He's probably better off taking what basically amounts to a free $1M, then he can go to school if he so chooses, and then go start another venture.
And sure, maybe this is his best idea right now, but he'll probably have a better one within the next 10 or 20 years. (I think the same thing applies to DHH, but it's even more true when you're talking about a 17-year-old.)