I must disagree with you - Just because it didnt sell, doesnt mean that the VALUE of the site wasn't $2000!... A house may be valued at around $400,000, not $0 just because it hasn't been sold yet! Obviously the site isn't worth that now due to the loss in revenue, but at that point, with the lack of knowledge that ranking #1 in Google images could infact do harm, $2000 really was the value of the site.
Many people value a website on average monthly earnings * 12... In which case the value would've been even more.
The point larry was making is that you should be careful when buying a website, and do your homework if your willing to spend $2000 on one. It pays off.
just my opinion.