This service is not to replace good judgement.
Yet, a seal-of-approval from trusted community members can make the difference between healthy pseudo-anonymous verification process and a witch hunt. Keeping a database of verified users, either on the block chain or off will curtail repeated (and aggressive) requests for verification.
I don't think it has no merit.... I just think that it doesn't solve the underlying problem. In fact, it creates a singular point of failure, rather than a more transparent solution.
I can agree it doesn't solve an underlying problem. I think it offers something people can show though.... like recognition-at-a-glance credentials.
I see it as an available avenue and option, one not required by any means, but if it could be helpful to some... it could be nice to have.