Citizen reporting has started in India. In the land of media, this is probably the first step towards democratization. Why is media important in a democracy? It brings accountability to the polity. Media if channelized properly is the one tool which can really make the other parts of the democracy work at its optimal pace.
Is citizen journalism sustainable? And what about its own accountability? You cant really have anyone reporting a story and then vanishing into thin air while leaving the population at large to bear the consequences. Yes, Citizen journalism could be the product of an idealistic journalist who wants to bring the news to its grass roots level. But that idea can truly take place if the medium of communication is shifted to a local language, else this idea would be another opportunity for the english speaking audience to have a disproportionate mind share of news.
Next question: What is the business model of the website? :D