If I recall correctly something like this was tried a few years back with a quake clone. Didn't last long, however, with bitcoin I could easily see it garnering a small dedicated fan base.
I'm not familiar with that.
I think this has an excellent chance though as it lets you gamble on your gaming skills. I can see it growing to the point that there are tournaments, high stakes games (e.g. 2 bitcoin entry fee), more games being added, etc.
Thing is, you can MAKE MONEY PLAYING GAMES!
They'll need to deal with botters though, but a lot of games already have anti-bot gamemasters and infrastructure to sniff out bots.