How come there aren't like... five million copycat sites of this yet? All I can think of is BTCDice and it doesn't even seem to work?
I think because it actually is harder to get it right than it seems. You need a deep understanding of the bitcoin protocol as most of the stuff you have to do is beyond the capabilites of the standard client. Besides BTCDice if I remember correctly I think there were one or two additional 1:1 copies that also went down quickly. And SDice will have forever the first-mover advantage, so any 1:1 copy will have a very hard time.
If you want to compete with SDice you have to differentiate, not just copy (which is what I am trying with bitbattle.me

).