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I don't want to deny there is a problem with dodgy reviews because their clearly is in some cases, but equally hotel owners/managers are hardly unbiased reviewers of their own properties! There are plenty examples of hoteliers trying to bully reviewers into removing negative reviews.
I think review sites are here to stay (indeed have heard a rumour LP wants to do something in this line) the issue in my view is of how do you "trust" the reviewer. There are a number of options here, 1) as per booking.com & Agoda only allow people who have actually stayed to review, 2) rates the reviewers themselves (as per AirBnB) and incorporate the reviewers rank in your rating algorithm (I.e. Ignore or very low weighting on poorly rated reviewers) or 3) other "trust" mechanisms e.g. What TA do already with Amex card holders.
While this is a step in the right direction, it doesn't necessarily guarantee the review is genuine in my experience. I know at least one example of a hostel owner who put fake bookings through Hostelworld (and most likely other sites too) in order to leave 100% reviews under a fake name.