Minus the crazy font, cursing, and pictures Dave McClure has a point in his article: It's all about the Faces > http://500hats.typepad.com/500blogs/2009/05/the-faces-the-fa...
Then the company missed its sales targets and had to lay off a third of its staff... including that VP of Marketing.
Anecdotally, faces have worked really, really well for some people. (Specific example coming at my Business of Software talk tomorrow, so I can't spoil it, but it will be livestreamed and have slides posted.)
http://meta.wikimedia.org/wiki/Fundraising_2010/Banner_testi...
For those that want to see the stream (looks like an email is required).