haha, great (tragicomic) headline. but i think this is an important lesson. api/platform providers and the startups that build on top don't really have aligned interests when it comes to building companies. mashup makers (e.g. frappr/platial) are basically free R&D for the platform (google), and if a startup creates a mashup with a lot of value, it's unlikely the startup will be able to capture it -- or conversely it's doubtful that google will be able to keep its hands out of the cookie jar and sit back while the profits go to the startup (yes, google could acquire the startup but it certainly isn't obligated to.)

microsoft left dozens if not hundreds of startups in its wake this way (cherry picking good ideas and bundling them with the next version of office/windows/visual studio), and i'm sure there are more contemporary examples in the making (amazon could do this with S3/EC2, e.g. by selling an "s3drive" or other value-added services.)

it's too bad to see this though; it's a big disincentive to innovate on top of these platforms.