@BigFurry - Traffic selling + popunders (traffic trading sites) is another aspect of xxx sites, and this model still works and makes money. I've even seen people trading traffic and having thousands of people per day from google.com / search, which would be an important thing from my point of view, if I would work on these type of sites. I've been figuring out how to trade traffic and dont get banned by google.com / search sites, but I have not worked on this yet. This should be a doable thing, but like you said, this is somehow on the wrong side of things, and it may be a little better to do what I do (better longer term, and the money probably worse). I may come back to it later on, start something separately, and see how things go. I want to work on xxx sites, I may do the mainstream sites later on, but I am not interested in this now.
I am not sure if this is the right project / projects to invest the time into, and programming would be a better thing, but it would be even more risky than this is. It is better to focus on creating something every day, producing, as nobody has a crystal ball that tells them how everything works on the Internet in the real time. Just like reading all these "White Board Friday" sites, where they write articles to promote and sell their own things, analyzing everything theoretically (over-analyzing) and so on. It is better to make something and then the people will be analyzing your sites. Even the info from google.com is wrong (the Matt Cuts videos and text).
The number of people that use the Internet is still growing, people get new devices now, so if you make something good and if you have time to do it (this is probably an important part, like these full three years or more to start), it should work. Work on just one site at a time (for like years), focus on one niche and not all of them, this should be making some sense too.
I may be able to generate lare amounts of text daily (hand written text) and push myself into this direction after I have the import and categorization done. I can then spread out the pictures to other sites (like with Gallery Magic from CyberSeo.net), and then push max amounts of text every day. This can give me an advantage too. Then I would have something to offer to other people, as far as exchanging links (like 500 or 600 good sites, full of hand written text - this has some kind of value, even with no links). So longer term, hard work and productivity can make it work.
I know about cams, and I will incorporate that (white label). This is probably the main source of income for most of the people on this board.
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