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I think what is affecting the conversation ratios is that Adult sites (free,avs,wahever) are rather new market in the economy as a whole and it takes time for the free market system to get things balanced
When you made easy profit in the past, more enterpreneurs joined the industry off course.
According to theories: in time this will lead to a balance in supply vs demand and the profits will become as big/small/whatever as in any other business.
In practice this means that anyone can make any kind of site as long as it's legal and there's nothing you or I can do about it. If someone makes a profit with TGP - good for him. If someone else makes a bigger profit with TGP2 - even better for him.
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