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I can see all kinds of exciting potential for literature studies. Literature circles would be great on Book Glutton! I love the proximity chat and annotation features. Caveats: the site is still in beta, and according to Sylvia (Classical Bookworm), only works in Firefox (though I admit I didn’t test the site in other browsers, nor could I find information on the site that states the site doesn’t work in other browsers — still, I thought it prudent to pass the warning along).
The first thing I wanted to do was dive in and form a reading group with my students. Social reading networks. I love Web 2.0.