I think the real issue is that there's people with lots of money that are willing to fund a lot of different companies in the hope of stumbling across the next facebook. Result? A whole host of well funded but ultimately useless apps and websites. Meanwhile, the people who can make these websites are making lots of money.

It's probably a bubble to some extent. Eventually, if the return from all these web apps is less than the money spent on them, the money will dry up. (I'd imagine that this will be the case - most of the value of the most-recent crop of high-value tech startups seems to be based on hype and even bigger companies buying them, rather than profitability or revenues). In the mean time, there's still people queuing up to fund things they don't understand. The biggest thing to remember about bubbles is that they always seem to keep growing far longer than any sensible person would expect. Will the money run out eventually? Probably.