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I imagine this would be very hard to monetize and get customers as-is. The below is merely a brief list of problems that I've thought about
The average user needs to be sold on the effectiveness of a product very fast, on the first usage (or perhaps even sooner!) in order for them to continue using. However, SRS software in general are almost by definition antithetical to that goal: Their benefits do not come until far into the future, worse still it's an undefined time in the future. Sure you can use arguments about the benefits of SRS and the psychology of memory and <insert gwern.net FAQ here>, but it would appear to be an uphill battle to make the benefits immediately relevant and immediately relevant to the people who wouldn't already be using Anki and other free equivalents.
In addition, before you can even start using the product as advertised, you have to learn how to make cards that are easy to memorize or download a deck which is already well made. The first is "Wait so you want me to learn all these tiny rules before I can even start learning? <browser back button>". The second presents a chicken-and-egg problem. How are you going to have high quality decks that teach things? By having users! How are you going to get users? By having high qual- oh, darn.
It would appear that your general idea is going in the right direction; to make the best SRS program as painless as possible and to extend it to be more powerful. Your emphasis though, would appear to be more oriented toward existing power users of SRS. So there's the matter of getting them to switch which... I have no idea how hard that would be. (Sample size of two; you'd obviously build something you'd want to use; I'd jump on board instantly if I could transfer my existing Anki decks).
One possible solution to the adoption is to piggyback it on an existing service; if users get to use it as an additional option on something they already use habitually then getting consistent usage wouldn't be as much of a problem. I believe Khan Academy has expressed interest in including SRS in there. Another is to try and "gamify" it (argh I hate that word) by either making the entire application a sort of game or incorporating cow clicker like features in there to get the user hooked (IT'S NOT EVIL IF THE ADDICTION IS GOOD).
The making your own decks feature can be mostly hidden from the normal user, with a gradual introduction to it as they use the product more (paid feature?). As for having high quality decks; you can try porting the entire Anki library of downloadable decks, filter them in some way and use that to bootstrap up to a much higher standard of quality.
Of course, any and all advice here means absolutely jack compared to the behavior of actual users; release a minimal version, see who bites and check to see what the users complain about before even thinking about what I said here. Making money is and should probably be a distant 4th or 5th consideration behind making a product that you would use and making it easily extensible.
MIcaiah, thanks for the detailed and well thought-out response. I'll try and respond to some of your thoughts:
As far as monetization goes, I think the best route would be to charge online education providers on per-API-call basis. The end goal would be to become something akin to the "Twilio of online learning." With a sufficiently developed system, I think it'll be possible to convince companies in the online learning space that this is a worthwhile value proposition for their users. End users who have committed to a particular online learning program are much more likely to be willing to use a spaced-repetition learning system to aid in their progress in a particular course.
I think I gave the wrong impression here, I think I'd much rather target non-users of SRS. Building something simpler but more accessible seems like a more viable alternative. Gaining traction with average, non-SRSing users, and then later adding best-of-breed features to tempt online learning providers seems like a more reasonable approach.
I've thought of a couple of simple use cases for this sort of platform that I think seem easy to build and quite compelling for an average non-SRS user:
Beginning with a simple, self-curated deck like the ones described above would also help to avoid the problem of not having good content for first-time users.
Very interested to hear feedback on the above.
Congratulations; you've motivated me to decide I'll use some sort of SRS to remember the names of my students, the next time I have to TA a class (most likely in January).
I'll find something to use one way or the other, but if you manage to provide a working alternative by that time, I promise to use it.
I used SRS to remember my student's names. They thought I had superpowers.
(I didn't have the TA facebook until after the first session, and so I introduced myself and shook the hand of every student, and then got the facebook and memorized the names with SRS before the second session. It might be similarly impressive to know their names before the first session without them telling you, but that runs the risk of seeming creepy.)
I always thought that memorizing faces and personal details would be a good use of SRS, but I never really had any opportunity where it was worthwhile. Glad to hear it works!
The July minicampers made an Anki deck for learning faces/names/bios before camp. We didn't get quite enough time to train properly, but it was still a massive help compared to learning 30 names in real time.
How has it gone so far?
The class I'm TAing has about 60 students in it; I see 40 or so regularly because one of the recitations is early in the morning and fewer people show up to it. Despite being rather lazy about reviewing, I can match around 90% of the photos to names, and make almost no mistakes going in the other direction (trying to imagine the photo given the name).
However, I think I only have around 50% success rate when faced with actual students. The photos I have are likely outdated (they're the photos taken for university IDs freshman year, and I suspect most of my students aren't freshmen) so that might be the problem. Another problem is that when learning the cards, I tend to remember facial expressions and incidental details like background color, even though I try not to; obviously this knowledge doesn't help in actual interaction with the students.
(I used Anki instead of MemStash.co because I couldn't get the latter to do what I wanted.)
All three look promising. However, you might be pidgeonholing yourself by trying to go back to the "SRS as generalized learning tool". For most people, it would appear as if that's too abstract. You may be much better off focusing on the most generally appealing use case (The name-face ID one sounds the most promising; I can't imagine any people who weren't already self-motivated autodidacts using the first two). In fact, it might turn out to be much better than than the original Anki-as-service app; it appears to me that many more people view "oh god what's her name I just met her a week ago THINK" as a problem than "Oh, hm, it appears I've forgotten how to say 'praying mantis' in Japanese".
To extend the Name-Face identification concept, you could also add things such as people's birthdays, dates of important events such as anniversaries into it; although I'm not sure how many of those things aren't problems anymore because of calenders etc.
I can't comment too much on the "Twilio of online learning" idea; I don't know the interest level of online courses such as Udacity, Coursera and Codeacademy on something like that. Although I will warn that there's a real risk that it'll be treated as "just another complicated feature that I don't need to use" by the average student. But if you get a hardcore userbase who are happy with the product and willing to give feedback then you're in much better shape than trying to arbitrarily design for the "average" user.