Social networking is at a major fork in the road. Down one road is adding more features to a walled garden and opening up just enough, so that users seldom need to leave. Most sites are going down this yellow brick road and the prize is clearly a big one. But they may end up back in Kansas. Down the other road, lies a future of being the primary repository for your connections (aka the social graph), but with this data available via open APIs to anybody who needs it. That is a utility type model, and as with any utility, it can be hugely valuable at scale.
Deciding which path to take is a real decision. A botched choice will likely end in failure, albeit via a long, slow decline.
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