Great - thanks for your input!
I have one more question though - do you think it's a good idea to go to the company (Pet Holdings, Inc) to try to sell the domain? If the registered trademark is "FAIL Blog: Pictures and Videos of Owned, Pwnd and Fail Moments®" does that include just the FailBlog portion?
My thoughts in purchasing the domain was that the site doesn't work on my iPhone, the images don't load even when I have strong wifi. At an Alexa rating of the mid-700's in the US you'd think the company would want to capitalize on a mobile friendly version as well.