Except for the giant screen, I don't see much that looks particularly extravagant. Too much space (why all those meeting rooms?) and too many employees, probably, but it's hardly Ion Storm.
Keep in mind that space in DC is anything but cheap [1][2] and LS has some prime locations.
1: http://www.businessnewsdaily.com/2855-most-expensive-commerc...
2: http://www.inc.com/news/articles/2010/10/washington-dc-rents...
It's not that I think this money was mis-spent -- at best those things might have been able to pay for the salaries of only a few employees -- it's that, taken together, it seems to be a sign of a company that might be distracted where its resources are concerned.
Or maybe they just got really good deals on everything. :-)
Is Living Social even profitable?
Edit: To answer my own question, a $558 million loss last year: http://www.bizjournals.com/washington/news/2012/02/01/regula...