I don't find it insulting at all, just incredibly amusing. I don't think the 'models' are being coerced into anything, and those lonely guys know exactly what it is they're paying for. Consent all around. I don't think this is indicative of anything else at all, and I don't think it makes any sweeping assumptions about anybody that cam-sites don't already make. Those assumptions being 'lonely guys will pay to see girls fuck around on the internet'. There's millions and millions of sites that prove that assumption to be correct, so what's insulting? The gamer spin?
This site isn't relevant to gamers at all, really. It's just a cam-whore site with a gimmick, they have sex toys off camera, and Halo on the computer. It's a site that's implicit rather than explicit, and this has gotten it some very good free advertisements in mainstream media. That link is not a news article. It's free advertising to a camwhore site. They know precisely what it is, and so do the patrons. I genuinely believe that the only people being taken advantage of (arguably) are the media sites that are forwarding this link. As for the rest of us, why do we care? We shouldn't find it to be anything other than slightly amusing, that it has this much attention. It's an ingenious publicity stunt for a typical website and nothing more.