Agreed. I don't think the market for non-coffee shop workspaces is still that sizable, particularly in non-city environments. It's definitely growing though and I think in five to ten years, this market will be able to sustain a more viable business model once the shift in work patterns from full-time cubicle farm dweller to freelancer takes place in greater numbers.
I personally used Loosecubes to find a great space in midtown NYC and built some solid friendships with a few of the folks there as a result. They'll definitely be missed and I wish them well.
Campbell is a rock star. Really disappointed they will be shutting down. Their product and culture were so uplifting! It's a great idea, but the market didn't pick up in the way they expected. I agree the market was a little ahead, but there were a few corners they could have cut. AirBNB did it well and it's possible they could have galvanized support for the co-working movement in the same way that AirBNB made it happen for travelers.