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I know that according to pole I did last Friday afternoon about Facebook, *half* of a fairly random sampling of VentureBeat readers think that Facebook is doomed.
http://venturebeat.com/2008/02/22/facebook-hiri...
I generally do posts that argue against that argue against skeptics like you. But of course, you'll also notice that we do not-so-fawning posts about Facebook from time to time. :)
The reason why Facebook is relevant is because it knows more about a massive group of people than even Google does. That *alone* is worth billions in terms of targeted marketing and advertising opportunities.
'Funwall' has become nothing more than spam for me, with videos and chain-letters clogging the space. I just ignore it now. Superwall is basically okay, but it just means having two walls, one a bit more flexible than the other and it didn't catch on with friends- perhaps if it had it might have become a source of spam too. So I do understand a legitimate push on Facebook's part to 'kill them off'.
I have actually started making new aquaintances, maybe even friends there, so I am exposing myself to possible annoyances- but for some reason this hasn't happened, perhaps due to the checks and balances you are allowed.
What I am getting at (in a round-about way!) is that Facebooks unique strengths are based around being able to intimately interact with real friends online, with games and fun messaging. It has been unobtrusive and intuitive enough to attract people like me, in their 30's, that are alienated by the glitzy, rap-culture influenced style of things like MySpace, that is from an emerging culture of younger generations which almost scare us old fogies!
Mixing everything up with news feeds that concern people you may not even know (i.e. friends of friends) could water down the comfort level. At the same time, though, it needs to grow through people meeting new people, it's just finding the best way to do this.