OK, I live a sheltered life, but I recall being amazed that anyone, except maybe a performance artist, would want to have a webcam on them 24/7 or even a substantial fraction of that. Or that people would pay to watch basically nothing. But of course that was before they invented “Reality” TV. (That professional porn would move into the webcam biz and that people would pay for it was just sad, not surprising.)
What's especially ironic is that the proximate cause of the demise seems to be paypal's refusal to process payments to Jennicam, on the grounds that it broadcast nudity.