Further, for the record, the inspiration for Eduset came from Pownce. When I first tried the Pownce closed beta, I realized that its model would apply perfectly to the classroom setting.
Edit: Also, note that Edmodo is planning to add paid features this year (http://www.edmodo.com/blog/2009/06/07/thank-you-for-a-succes...)
Edit 2: I'd like to emphasize again that I sent Jeff a long and detailed email about this exactly 3 weeks ago, containing everything I've said here and more. He confirmed to me that he received the email, but has yet to reply. For him to then take the debate public here, without bothering to talk to me personally, is unnecessary and absurd.