Where is the best place to sell a fully-functional, web 2.0 website? eBay seems like it won't attract the right audience and I really cannot tell the difference between the myriad of SitePoint-like sites. What has worked well in the past?
If you can drum up enough coverage, it works quite well. The key is getting coverage - the more people know it's up for sale, the more people will bid.
From what I understand they sold the domain and software which was the business.
That said eBay is specifically referring to the type of digital good that can be duplicated endlessly. A website is a single thing. You can run the software that runs it on another domain but you are not duplicating the site itself. Which is why I don't believe it would run afoul of this rule.
Selling a website and domain... it is hard to get a good valuation out of it. It is a lot like a hot rod where a person has put in thousands of hours but when they want to sell there car no one will give them enough to justify all of those hours.
Try this site http://www.codango.com/, you can list it for license there. This way you can license it over and over again I believe you will make more this way then a one time sale. If you get a good base of people who have licensed it, you can create upgrades for another thing to sell.
It's a side project that I worked on called PopChatter (http://www.popchatter.com) - which was more of an experiment in Ruby on Rails than anything else. I simply don't have enough time these days to grow it and innovate (just not enough time in the day!).
If you can drum up enough coverage, it works quite well. The key is getting coverage - the more people know it's up for sale, the more people will bid.