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I think it's that's a very good rate of growth for a new service. The scaling challenges alone are not obvious and slowly taking up market share is the safer thing to do. If I was an investor seeing these growth rates, I'd be really happy as long as it keeps up and only plateaus when the goal is reached.

just how fast do you expect these things to happen? overtaking the overwhelmingly dominant reddit image sharing host in a matter of a few months sounds pretty damn dramatic to me.

I would love to "fail" by steadily increasing growth, becoming #1 in a ~year.

It's not apples-to-apples to traditional startup analogies when there is a giant UPLOAD IMAGE button on the Reddit submission page.

Unless at some point in the near future you turn off the imgur spout.

Not sure how this proves your point. Reddit is about to overtake Imgur...