Harder for search engines to spot, and you'd get complaints about customisability.
You could basically look at the complaints levelled at Google Adsense (better now since they introduced new colours and different sizes but not perfect). If you implemented some sort of theming system to make the iframe fit in with as many sites as possible then you'd get away with it - Adsense does.
The easiest way would be to have the iframe displaying a php file and pass the theme as parameters
- eg. < i frame>domain.com?bg=red&text=blue etc < / I frame>
or
domain.com?theme=light if you don't want to hand over full control of the look of the page. Pretty much anyone could knock up a nice little generator to create the desired code for users to drop into their site. You could even create lots of different pages using different colours and "fake" a generator that just picks the correct page to show the link for.
The difference with this approach and adsense is that you want the results to be spidered by search engines, which is a bit hit and miss - anyone know which engines notice iframes?
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