I began a social bookmarking website using Drupal a while back. After numerous attempts at keeping it "legit" like Digg, and monetizing it (which have always failed), I have finally figured out a decent use for my website. Most users aren't adding normal blog posts, but they are using it to gain backlinks to their websites. I'd say about 100% of the many users (Alexa under 40,000) use it to promote their sites. Most off the sites I checked were new ones. If you are looking for a niche check it out. They may be onto something there. And if anyone wants a crack at monetizing it let me know. social bookmarking site
Site seems nice, I would suggest try creating a more customized theme. It'll leave a brand burned into the minds of your readers and even new unique visitors, which will help bring in constant traffic