I loved Diaryland since it was fully customizable. It was my intro into templating! It was very crude, but it worked.
But..what says something like Diaryland can't be brought back now?
Back then there was a forcing factor to making your own website. Not just personal sites, but bands, artists, interest groups, etc. Now everyone just uses facebook because (or whatever) because it's easy and everyone is there. Even during the transition was better as myspace allowed you to customize the crap out of it with CSS and, as we were just discussing, DiaryLand gave you full access to do almost whatever you wanted (in the confines of static pages).
It has a LOT to do with billion dollar companies throwing their weight around and influencing politics. Tom never did that shit! (although given time, who knows... he did sell out).