With the downturn in the economy, we are likely to see many more weak social networking business ventures fail. It Died is likely to do very well for the next year or so as it documents flops like People Connection, Flip.com, and Pownce. It's like the remake of an old horror movie--The Return of the Dot.Com Swamp Thing.
As I have said many times before, the fact that you can mash up Twitter, file sharing, and instant messaging (the Pownce strategy) does not mean you should, or that there will be a market for it. Social networking tools and sites have a place in the digital world, but there are so many that we can make use of at any given time. For the time being, FaceBook and MySpace have probably won.