I have a site: http://www.flashgamereviews.com/ It's about half finished, been a while since I updated and traffic is starting to die. The sad thing about this is that the backend for the site is awesome, I spent two weeks writing it, REALLY easy to add reviews. So far the site has only made $2.30. I had a typo in my .htaccess file, which caused the site to get killed in google, and it's traffic has never recovered.
It seems that you are doing this site for a hobby rather than trying to make a living from it. It's up to you what you do with it, you could either sell it, keep it as a hobby or try and turn it around. One learning curve that I think you have learned is mistakes. Although it's easy to make mistakes, you have to learn from them quickly and also find them just as quick as what you make them. That .htaccess file should have not damaged any of your search engine listings or hardly any of your sites traffic if you had noticed it a few minutes after you had done it, that could have been done by testing a few pages of your site from what you had modified I guess.
Hi tibberous, You do not implement Google's AdSense effectively even though your link ads are place at a good position. You site is pretty good and easy to navigate but you might want to add some ads around the posts and other areas. About search engine, try to put on a sitemap (you can also use sitemap plugins) and use title tags effectively. Traffic should come good enough. Just keep on going. Remmeber that don't treat this as a job. Or else, you might else work at a company for higher income. SInce you are here to make a living online, it's best to do what you are best at and what you are interested in. You can also try social media marketing which work well. Do not just limit yourself with flash games. You can also review other games like console games and computer games. Good luck. *My blog has lots of tips that my be useful to you. It's just in my sig