I use it. And I've made $44k there over the last few years. (If you PM me, I don't mind telling you my username so you can see my profile, but I don't want to put my real name up here.)
It takes some thought and work to get started, but it's possible to make a reasonable amount of money. The forums (water cooler) on Elance are a mine of information and well worth looking through if you're planning to give it a try.
To stand a chance you really need a paid membership. And remember that you have to factor in Elance's commission. Most people in the US - who have been there a while - estimate about 10% of their bids succeed. About 90% of the projects go to about 10% of the providers in the writing category. With a good profile and samples to show, you're already ahead of the masses. Although taking a relatively low paid project for initial feedback can help, it's often counter productive to bid too low. Under $500 projects can be worth it at times, as they may lead to more or take little effort. You need to learn to read between the lines.
On the negative side, the system can be a nightmare to navigate and there are some real sharks posting projects :-(
You won't get rich on there, but it's possible to make $1-2k per month with concerted effort. I have other avenues so I don't focus on it to that extent.