You should keep the public rooms up, but show a viewer counter and duration of how long the room has been alive. That way, if someone comes onto the page, they can see if a room has been actively streaming to an audience, which would be less likely to disconnect, versus a room that someone created on a whim that they don't intend on keeping around

Yea I would like to and maybe I will revisit the idea, but the inappropriate content issue has me concerned, so until I have some kind of solution for that I think its more responsible to disable it.

You'd probably just have to have people create accounts, verify that they aren't bots through email and captcha, then wait for them to achieve a certain amount of cred before allowing them to have a public channel. And include a flagging system, of course. And add moderators. So yeah, not exactly a short list of things!