I'd do it if I wasn't jaded from all the cheating that goes on in those games. I played all the time through college and was pretty good at FPS games, but that won't get you anywhere when someone's got a wall hack, aimbot, adjusted player models, or a speed cheat.
Good point, but I would imagine that they would have some sort of server array set up just for this type of play, and it would be quickly obvious - or even disallowed - by the servers if someone were using such a patch.
Worst idea ever. You think cheating is bad now with no $$$ on the line? Also, once money is involved, lawsuits and such are 100% sure to follow.
I could see a LAN tournament where machines are checked out beforehand and there are cash prizes, but online play for money just begs for rip off artists.
But, no one is forced to play so really none of my biz. I would consider this service akin to 3 card monty I see on the street: they'll take your money *every* time, but no one ever forced you to play.