The daily-deal model forces a photography studio to shut down

They knew what kind of arrangement they were getting into. Correct me if I'm wrong, but don't daily deal sites like LivingSocial / Groupon offer voucher caps on their deals now? If the studio couldn't handle that type of volume they never should have gotten into a deal with Groupon.

Groupon / LivingSocial are upfront about how their deals are conducted. People know that they are giving away 50% of the proceeds. Groupon doesn't say, HEY! The customers that come through us are going to be loyal repeat customers!

It's pointless to blame LivingSocial and Groupon for poor business planning and execution.