Our current model involves connecting devs to good clients (i.e. people who've done this sort of thing before), who we screen ourselves (and because we've done freelance development ourselves, we know what to look for).
Check out http://getlambda.com if you're interested.
Our clients are primarily located in SF and NYC. I'd say about 20% of our clients are okay with remote work though.
This scares me off completely. Not that I doubt that I am good at my job. All morality aside, who are you to know who is? A Rails dev and an investment banker.
You'd think that two guys who think of themselves as "entrepreneurs" would know not to say stuff like that.
I think that's mostly down to mismatch: fewer employers advertising for remote positions and more people looking for easy money that can be taken advantage of.
Interesting aside: your own comment is a perfectly reasonable reply to itself.