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http://www.dodgeball.com/
They do something very similar but the difference u send in ur location by hand rather than using GPS and it is based around SMS messages rather than a web site.
As more and more phones are capable of web surfing, and data plans drop in price SMS will become extinct. People will send Emails which will be cheaper with their flat rate data plan than each SMS.
This concept is really dependant on the fact that mobile phones are equipped with GPS but i dont see that being too far off...
Thanks for the link tito!
Possibly bridging the gap that social networks has taken away from reality and meeting people in person etc.
Has a really interesting article on gps/ social networking... pro's and cons..
http://www.whrrl.com/