Fact is, Sequoia isn't a fly-by-night operation. No doubt they're investing in the idea, the team and the (non-public) direction it's going. I wouldn't be so quick to declare failure.
Spontaneous geo connections, which seems to be the idea (like most other people, I don't quite "get it" yet), is an interesting idea. It reminds me a little of Twitter, actually.
Still, it does make me worry when a company makes a big splash with what seems to be poor execution (the app). Time will tell.
In the current environment I hesitate to predict failure of any kind, particularly with that much runway. Chances are that the worst outcome is going to be a breakeven to moderate exit due to a Facebook or Google talent acquisition. After all, it's social, it's mobile, it's local... pack in those buzzwords!
For people who don't "get it" (like me), ask yourself this: did you "get" Twitter when it first started? I know I didn't. If you're honest enough to say you didn't (because I bet virtually everyone didn't) then take pause before declaring failure.