Social Networking Oversaturation
Financial Crisis Forces Site Shutdowns
Bottom line: Money makes the world, and the Internet, go round.
Implications - But the thing about the Internet is that it's viral and cyclical. There are certain sites -- Facebook, for instance -- who seem to have carved out a valuable niche in the psyche of Generation Yers. It's hard to imagine them not succeeding. The other companies? I'd say they're at the mercy of changing Internet emotions.