Kids 20 years from now will be using facebook. Im quite sure of this. Theyve found and milked a niche that is based on fundamental human desires. There isn't and won't be an incentive for people to switch off of facebook. Friendster died because it never gained the popularity facebook has now. Therefore, the original friendster users were almost "forced" to switch. The market has settled now. Look outside of your own high and mighty opinion about what is and isn't valuable and you might see whats going on in the world.
Agree completely the market is saturated. 40 million young people arent going to just switch to something new.
Friendster dug their own grave. THey had a good thing going, but their server was slow (Still slow). It was a pain to surf their pages. Then they changed the user interface. All of a sudden the familiar features were GONE... people were pissed off and left. The day Friendster fired the blogger was the day they started the ski run.