If you do this for long enough eventually all your friends will stop calling to see if you want to hang out ( http://xkcd.com/710/ ) I've read somewhere that no other mathematical problem in history has wasted so much time of such brilliant minds. I wonder if it's true ...
For any mathematics problem, we can never know whether studying it is wasted time. For example, look at number theory. For centuries, it was without utility. Then, suddenly, it got practical applications, making all the time spent on it wasted time :-) Similarly, the Collatz problem may seem useless enough, but what if, in a few millenia, someone applies it to physics or to sociology?
However, everyone whose work does not directly or indirectly lead to an applicable (or otherwise useful) result has been wasting their time.
Although I guess that's true for anything.