App.net has a very smart business model. It's goal, at least for now, is not to have millions and millions of average users, or Lady Gagas, or Justin Biebers. It's goal is to attract industry professionals, designers, developers who are willing and who are also capable of paying $50 a year to be part of a limited network. At its early days, I think that App.net will resemble the early Twitter. Its users were people who believed in its success, they were mostly the same demographic that App.net is aiming at now and a lot of great things came of that. The masses didn't believe in Twitter, they found it useless - and it was a much better service back then, without them.
Apparently you have too, yes. Otherwise your website can be taken down if there is any copyright infringement. We've seen this happen recently with GoDaddy taking down websites (with the request of the government)that didn't have simple ToS's.
Especially, if you have image uploading.