Are you asking why nobody has made a website that competes directly with Craiglist, but with a better interface? Padmapper allows you to post listing directly, but it's very difficult to get buyers or sellers to bother with a different marketplace when all the other buyers and sellers are already using Craigslist. You can't beat Craigslist on price, and many non-technical people are already comfortable with the existing system. Convincing them to switch to a different marketplace with fewer potential customers and a new interface is very difficult, no matter how great your features are.
Nope, doesn't suck for sellers, at least in seller's markets (SF), they don't have to do anything other than list, and renters will flood in.
Due to various factors (demographics, etc.), sellers also tend to be not the most tech savvy people. I can't believe that it is not standard procedure to post a video walk-through these days. A lot of listings lack even a photo.
Does it suck for people on the other end - people with a property that they'd like to rent to others?
Why hasn't some other solution come onto the market to fix the problems of craigslist?