I wouldn't personally use this as I want my members to come to my website and not just load stuff locally. =) But as long as it's configurable (as you mentioned), then I have no problem with it myself.
*EDIT*
I just thought... I wonder if this would be "legal" though, a lot of games you get from places, you have to sign up for, agree to specific terms and I think some even have it so that you can't distribute the games. I still think it's up to each admin, but just pointing out something that might be a cause for concern.