there are two issues that I see:

1. People tend to lurk rather than participate (on most large forums, something like 1% generate 90% of the traffic)

2. People as a whole have very poor writing skills and "crowdsourcing" editing and revisions will likely result in works with poor grammar and structure.

I've thought about an idea like this, but more like a 'Choose your own adventure' type crowdsourcing/entertainment site. I'd make it wiki style where each "page" would have multiple paths to go down.

The hard part is keeping the pr0n out (there's actually a huge demand for text based porn of all things).