The site is legitimate AFAIK, but I still prefer to use escrow through a forum member that I trust over any semi-automated website. I like working with real humans, and I am willing to pay extra just for that, but it's all just up to your preference in the end. The site seems pretty decent with its small 1% fee, though, and I may actually try it out in the future just to see how well it works.
Yup. Every need for escrow is unique and more than likely needs communication and tailoring. I'd consider it for something mindless but not if there's a realistic prospect of things getting messy.