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From what I've seen of it, WebQuotes basically looks for links to a site in Google's index. It then takes what the owner of the site has written about the link, and stores it as a web quote.
I suppose the idea behind it is that it gives a good opinion and description of the site's content. So if I linked on my site to Webmaster Talk saying "lively and informative webmaster community", that would serve as quite a useful piece of information for users searching for it.
I can see it might be up for a bit of abuse, though, if people can change your listing by writing things about your site on their own. I wonder how they'll deal with that........
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