That's the point I took away from it yes. Person posts image that they do not own and profits from it. That could be problematic. Imgur, YouTube, etc.. Aren't responsible for user generated content. That's their out. Once a "user" wants to profit from content that isn't theirs, I don't see that flying.
Thanks for clarifying. Interesting point. I think that DMCA and the likes will protect this site just as it does for imgur, youtube etc. Youtube users can make profit from advertising as well. So I don't think the DMCA distinguishes between infringing copyright for profit or otherwise.
That being said, if this site gives much more opportunity to making profit from copyright infringement, then it's more likely to become a target for 'pirates' trying to make a quick buck out of other people's copyright work.
The site can do something similar to what youtube is doing, which is to forfeit any profits if a copyright complaint is made (and maybe even giving those profits to the original copyright holder). This could deter / nullify infringements at least in theory.
It is rather complex and difficult process to manage, so any site hosting user-generated content should consider those implications.
Edit: the point was made.