My question was: what's inherently derivative about software startups? Why is everyone making photo-sharing software and not software to solve other (unaddressed) problems?
Web startups are attractive because they have low capital requirements, don't need much domain knowledge, and are more closely tied to changes in culture than technology, so there are always a few open niches.
2. ^What real problem does a company like Color solve? Is there one?
3. Maybe the problem is that startups are targeting consumers? B2B has a way of culling the herd: if you don't solve a problem, no one buys your product.