How many startups like this are there now? 300? That is probably a low estimate. I'm sure that everyone living in the Valley personally knows at least one founder working on the exact same product. And none of them are better than my Hacker News/ Facebook/ Reddit/ RSS feed combo.
I've heard some of the many Prismatic competitors describe themselves as "a Pandora for news" which is an apt description, since rdio, soundcloud, and Spotify are better than Pandora. Self, social and community sourcing for digital entertainment tends to be better than algorithms. While I believe the "problem" domain is severely overworked, if you're going to stick with it then my bet is that social algorithms like collaborative filtering a la Netflix does a better job than topic modeling.
On the optimistic side, a good company is more than a single product. Maybe the author's considerable expertise and experience from building Prismatic will lead to something cool down the road.