Yes its possible to make a profit from it, but problems with withdrawing and the fees make it impossible for most people. If you can figure it out though, Im sure you could make a killing!
It is true whilst doing this with only a thousand dollars invested is barely profitable because international wires have such ridiculous fees (hence BTC FTW)
The flip side is that it becomes very profitable when you are bankrolling USD50k a day.
A word of warning, this has a different risk profile to speculating on Bitcoins, as Arbitrage has in all honesty not out performed Bitcoins insane increase in value over the past few weeks. But again, this is tailored to the segment of our investors that would rather want to see a steady 5% return per round trip on their Government backed currency (Australian Dollars / US dollars / Chinese Yuan) than speculating on the unpredictable fluctuations in the value of Bitcoins.
To keep our machine churning, we're always struggling to find enough bitcoins to buy at market rate with USD. If you think you can help. PM me.