Bosch said
Years ago I remember this website had something pretty much as you describe. I guess the best way to describe it was like the arena but with talking. They were never really my thing due to the innate lack of direction but it always seemed like a popular place for people to exhibit their characters. I remember this website also tried to set up a PW a couple of times which in a way was similar to the Inn concept except with worlds. That was awesome for the month where it worked, you had like six plots going on in one setting and multiple settings. It was just too much to run though and inevitably collapsed. The Inn thing sounds totally doable though.
Not years ago. It was still going strong, from what I remember, up till the "old" site was lost. Can't remember offhand the title of it, I just remember having to bow out my character due to my having to move, and the loss of my internet access. I seem to remember something like 54 pages or more... fantastic interactions, we even had a whole storyline going on involving a religious cult that murdered anyone they considered sexually deviant. My character got "taken out" during an attack on a nearby beach. One of the RPs I was most sad to see lost.
As for tavern/inn threads in general, I have to say, they're my fave form to RP in. Get a good group together, like we had on the old guild, and it can go fantastic places, story-wise.