If you get the word out there, I think you will have a huge amount of requests.
I looked into using a service like this and it can be very expensive. If there is a free version out there, they will use it. A lot. And the fact it is almost instant makes it better.
I agree, this was the idea of making the service the only problem is getting the word out there. When people want thumbnails they instantly think of thumbshots (As used here on daniweb) people very rarely look into a service such as mine and some people can even be put off by the fact it is free. Once I have the javascript thing complete that automaticaly adds thumbnails to links when people move there mouse over them i can start trying to increase the sites popularity