Yeah, I've had a lot of success with Craigslist, and I've even recommended it as a site to use to many people. Still, I wouldn't call it a "good" site. It serves its purpose though. Using the
Craigslist Image Preview greasemonkey script has made it a lot more usable, but it's still not great.
That said, I owe a lot to Craigslist. My current apartment. My motorcycle. My truck. Even my job! All of them I found via craigslist, either exclusively or as a portal to some other collection of information.
I still think there's a huge opportunity to take on CL though. The trick is the same as growing ANY site really. All you need is a user base. The problem is the same as it is for sites like Facebook, eBay and even CL itself; they already HAVE the userbase. It's hard to convince people that your site is better when they've already invested their time and effort in some other site...
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no fat chicks