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I would still rather use bit.ly
I love it :)
If they used 6 characters, that means 56 billion possible combinations.
In X years time when they run out, they just need to add another character or get another domain like b.mp, r.mp, lv.ly, l.dy, l.mp, and they get billions more out of each.
Plus, all that needs to happen for URL shorteners to die off is for twitter to allow embedding a link with however many characters you want into your message without taking it from your character count.
I just wished there was some way on Twitter itself (without installing an addon or whatever) that we know what we're clicking. Like hover your pointer over the little link and it would show the full link or the title of the page we're going to or something. I'm sure it'll be an official feature in the future...
http://twitter.com/davidakhoa
A bit of a waste of time if you ask me. They should have just launched it as a new, separate service. Would it be so bad if people abandoned bit.ly? It's not really a compelling brand as such, so there wouldn't be much pain involved as, say, if Facebook tried something similar (rebranding).