uh... these are <i>not</i> giftcards they can't be used as gifts, they're non-transferable so point 2 is wrong too. As the person above (or maybe below) said, it's free money, it doesn't need <i>any</i> analysis. You give away $20 for $10 on a site people want to use, they will buy it.
I wonder how many people bought more than one. LivingSocial's validation was easily thwarted, making it possible to refer yourself and get close to a 3-to-1 discount. Slickdeals.net was all over it