Having heard a lot about this, including the fact that it is banned at my husband's University, I was intrigued to look more closely.
You do wonder on what authority people are writing (maybe very little sometimes), which does not breed confidence. I understand some malicious things can be put on the personality pages. The hardest bit to this task was finding a unique user name. I edited and added a bit on our College - it is important to know how many ghosts are said to float its floors.
I also looked at folk festivals. Clearly people do stretch what should go in an encyclopedia, to cover what they want to promote.
All that said, I can see it working well for a specific group, like librarians interested in Web 2.0. I don't think this will win out as our Web 2.0 tool of choice though.
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