I think failure is looking more and more likely the more I read of their blog and details of how they run things.
It's a very interesting case to analyze though - perhaps acquired too soon, never had enough pressure on monetization until it was too late... Questions over how well the site was architected. Sounds like they're using a lot of 'new' unproven 'hip' things. Casandra? :/
Seems like the founders and YC have been extremely quiet about the problems... It'd be interesting to hear their take on things.
Also can't imagine how Conde Naste could be happy with things.