Social Overnetworking

I recongize that I've been writing a lot in the last 24 hours but bear with me. There are many issues that, unbeknownst to me, I needed to get off my chest.

The one that is really starting irritate me is around social networking. If I understand the business model correctly, revenue is generated through adwords and then additional subscrption fees (if any) which i've got to believe amounts to very little (since no one wants to pay for anything someone else will offer them for free). I also believe there must be some enormous yet to be monetized value in the info that can be gleaned from the connections that people make between themselves, places they visit and things they buy.

However, It seems like with all the Me Too socials networking sites out there competing for these penny revenues, the ultimate value in the network is being destroyed due to fragmentation and dilution. Not to mention the overload that will come ablut as people become too frustrated with trying to find their friends on the social web. "Oh wait u are using AIM still? I just started using skype! Skype?? I thought Blingo was the way to go."

The only real value that will be derived will occur when companies study the social networks and develop products from their learnings that consumers will buy. Assuming they haven't already changed their minds.