I have a few gut reactions to it all.

There is probably some legitimate concern, but there I feel 80% is probably hype. I say the latter because it has reached the non-Internet street level. I know a forty-year-old mechanic who barely knows what the fuck Facebook is and he is telling me doom and gloom rumors like "They can't find the guy. That Mark guy? All the feds are looking for him and they can't find him!" That's hype when it hits that level.

Also, MySpace is still around. Facebook grew so fast so quickly it could lose half of all of its users and that only sets it back a couple of years. And it seems to be getting more and more in bed with Microsoft—some type of alliance against Google.