I described my vision of what opportunity I think was lost here: http://daltoncaldwell.com/what-twitter-could-have-been
I am running this experiment to establish, to the best of my abilities, whether or not there is a market for the sort of service I described and want to exist. The practical applications would be fairly different than a celebrity-focused gossip site.
I think Twitter as a product sucks, this is why I use TweetBot. I agree it is tedious having to do two step authentication for 3rd party clients, but i do that once.
Most consumers are driven by those celebrity-gossip services that silicon valley entrepreneurs roll their eyes at. Twitter simply peeled back the mystery (reason #34324 why Twitter is amazing) about what people talk and think about most of the time.
As Twitter continues to disfavor outside clients, there might be innovation (especially around mixing info from many sources) that's only possible in an alternate system... a system that doesn't require end-user/endpoint interface control in order to collect its sustaining revenues.