I'm not one to bash on starving student start-ups (I'm guilty of the same starry-eyed naivete), but I can't help but feel a bit cynical about the Diaspora situation. They had a chance (a real chance) and they blew it. And in some ways, I feel that if they would have succeeded, we wouldn't still have to be using Facebook or G+ or what-have-you: that is, services that go out of their way to breach privacy in every way imaginable.
I'm not an anti-NSA Free Softare Foundation e-hippie fanatic (let's be fair: there's a ton on HN), but there is a very real and very dangerous loss of privacy when using for-profit services like Facebook to store a significant portion of very sensitive and private information. So I'm not worried about the NSA as much as I'm worried about Facebook or Google circumventing ethical principles in lieu of targeted advertising, using my face/name without my consent, backing up private data when I want it deleted, etc.
Diaspora could have been a solution, but it failed. In a very real sense, it failed us all. So every time I read about Disapora, I can't help but let out a sad sigh. I wish I didn't have to use Facebook. I really do. I wish I had a chance ($200k and a free trip to the Bay sounds nice) to disrupt the social media sphere; but alas, I do not. Diaspora did; and now, years down the road, it hasn't even reached a 500k user base[0].