Have we already forgotten the $41M VCs put into Color, which literally had nothing going for it but personality?
I agree that they got too much money for their traction, but it's all Sunday morning quarterbacking.
Same with Clinkle, at first blush it seems like vaporware, but according to some of the insiders they had some hardcore tech that they could never get legally cleared to use.
I think the key thing though is that these companies have something real, but that they can't execute on it at scale.
I have a bridge I'd like to sell you.