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Stealth mode, schmealth mode
I think you have a valid point here. When I read the Economist article I was also thinking hard about what they hadn't quite got right.
Your views on niche socnets is interesting - I'm pursuing a slightly different vision that possibly has the same outcome as a niche, VRM.
Within a VRM "Mine!" [the place where my data and resources reside] I can determine who or what programme is allowed in and which parts they can access and so it will enable the niche grouping to co-exist with a wider group with each accessing only the material pertinent to their raison d'etre.
Rebecca Caroe
As you point out, the differentiation is building core interest applications (niche) on top of the platform, which in turn allows you to get the community engaged with real value added functions.
Big Picture analogy to me though is that Facebook et al = AOL, CompServe etc - closed worlds. The Open "Social Internet" is not quite all there yet, but you can see the components slipping into place - Open ID, Data Portability, Blogs, UM, maybe VRM etc etc. I'm still waiting for Marc Andreessen II to build the Social Mosaic and Sir Tim II to institute the GGG.
To put it another way, we combine community with consumption, whereas most of the emerging (and now struggling) social network sites around today are basically an end unto themselves.
So I basically agree that niche socnets (like ours) are the viable trend because users have other useful reasons for being there besides networking alone.