its a pretty cool idea and I did email stan about trying to integrate prediction markets via bts toolkit but he didnt get the email and didn't respond back when asking what his email was...
My team @ syscoin is in talks with truth coin dev and he wants to collaborate.. and its actually a very cool idea... the idea is we would dev and use him as a theoretical resource since he did alot of research on prediction markets that you can read up about on his github.
I think he hung out on our dev mumble session for about 3 hours and basically answered a thousand questions about truthcoin. Unfortunately he did not get to learn very much about bitshares at least during that session.
He (the main guy behind truth coin) spent months on this forum, so I am pretty sure he is totally aware of the whole workings of the BTS system as far as pegged assets (bitAssets) go.
I also find the idea of prediction market as DAC very interesting. (although all my attempts to get an answer on 'what is the GREAT benefit of it being on a blockchain, instead of being regular brick and mortar business' were never answered; the best I got was that I am stupid. Which I am and I do not argue with, but is not answering my question what so ever.)
That being said, I do not see why this prediction market should not work on a blockchain also, and do it well.
[edit] @toast
I know that he will likely say 'no' to money, but what else is not true? (I have my opinion, but I do not thing that is what you meant).