Goodreads is desperately in need of a strong competitor.
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Sadly, any Goodreads competitor will need to miraculously gain the network effect; everyone you know is on Goodreads, so it'll just be you and whoever you can convince to move to a new platform.
As for the downsides for Goodreads, this blatant lack of moderation is troublesome. I also dislike that Kindle / Amazon are the only visible links to purchase books by default. Amazon already dominates the ebook/audiobook market, so I also simply dislike Goodreads due to their acquisition by Amazon.
These days though, the FB API has been locked down and basically can't be used for growing your userbase anymore. Any new startups in this space won't have the social graph advantage that Goodreads did. Sad.