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In terms of Social Networking and Photo Sharing site.....really? Do we really need more of those? Is YC the only investor in the world that is still interested in these? Try pitching a social network or photo sharing site around the valley and see what happens. Even if you're a startup and you have social network, it's wise not to put yourself in the social networking category.
Has YC gone mad?
Call me cynical, but it seems to me the question YC is asking isn't "who's going to compete w/Microsoft", it's "who's going to develop a feature attractive enough that Microsoft will want to buy and integrate it, rather than build their own."
Same for many of those suggestions where there is already an established player. It's all about building a new killer feature, and getting bought out to integrate that feature into an established product. Everything else is just window-dressing to get the feature noticed.
They are fishing.
And we know that the only way to catch fish is to...go fishing.
They are throwing their net wide to stimulate ideas and see what comes in and filter from there.
The Wiki model - though magnificent in many aspects also has 3 critical flaws.
1 - The fact that information is highly - almost overly editorialized (sterilized to consensous) on some subjects
2- Ridiculously biased on other subjects - meaning that sometimes its not the facts but the dominant editor groups/arguments that get the page
3 - At other times the front line battle of edit wars which can leave a web surfer who comes in at the wrong 5 miuntes with a skewed view of the subject. Even one usermis-informed by an 'Encyclopedia' is not acceptable for the 'authority' that they claim.
That all being said - these critical flaws leave a gaping (yet not visible to most) hole in the market where the correct startup with the correct angle can approach and claim that authoritative slice of the pie. now where did I put my startup...... Hmmmm/
But nobody reigns forever. Rome falls. The advantages of being small and agile can't be understated.
It's not that other search services can't exist. I just dispute Paul Graham's assertion that something designed well will have the chance to supplant Google in the field. That's quite far fetched.
Google's search UX is simple (and that's good), but there is certainly room for innovation. Of course, unlike other types of innovation it's hard to imagine how a UX could be improved until you actually see it and say, "holy crap-- it never occurred to me that a touch-screen with this crazy 'pinch' idea could turn the mobile world on it's ear."
I have trouble associating the words "good design" with a search engine that has a bunch of crap I neither want nor understand right on the front page.
I guess it might be OK if their search results or map software or whatever were great, but they're also worse than Google here.
When he says beating Google in the design arena, I don't think he means "worse at everything but with drop-shadows and round-rectangles".
Of course, it is still a model of sobriety but they're working on, and it's not that easy, believe me to combine design excellence with efficiency.