This is interesting on a couple of levels. First of all, it takes community journalism to a different level. It's not regular folks submitting stories that are important to their lives, so much as regular folks participating in the news by submitting stories and then voting which ones make it to the front page. I love the concept.
Another interesting aspect of this site is that so far it has made all of its money with Google AdSense ads. Apparently someone thinks enough of the model to give them $2.8M to continue the experiment.