Is the only difference between this and, say, digg, the ability to block public access to a group posting area? It might just not be a compelling enough feature by itself.
That and the Online TV section are the main features that make it different. I don't really like submitting to Digg, and now Reddit, because my posts rarely get anywhere. Also since the people I really want to talk to about it are my friends it does me no good because they can't easily find my posts. I built Klipboardz hoping that there were other people like me who read news sites but didn't contribute for fear of posting or because it seemed pointless. If they post on Klipboardz they know that their friends will see it and then if it makes it to the front page it's icing on the cake. But, as you said, it may be that there are't other people who feel that way, or that the feature isn't enough on it's own. The Online TV section is fairly new and I'm still fleshing it out. I have a PC connected to my TV in the living room and it's nice to just click on a movie or tv channel and start watching it without waiting for something to download. ;)