I've ran some numbers of this and the biggest problem is gamers won't pay for anything, they hate ads and they don't click through. So when evaluating this versus other opportunities it loses out because there are still plenty of other better options. All that being said there is a need and after you have a loyal user base there is always a way to monetize it (right!?).
I've seen a number of these sorts of sites come and go over the years. Even a few facebook apps. No one has come close to nailing it. It seems that founders are not gamers; they miss the boat and make it too social network like. And if they are gamers, they never seem to push the site out of it's alpha phase.