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Yes, people will always need a place to store their content (99% of the time it's worthless junk.)
However, these web 2.0 companies seem to have this mentality of "If I build it they will create content for it." Which is not always true, especially those who are entering an established market.
For Example look at Second Life > they just keep growing.
I'll put my money on snackable software, since it's so en vogue to make itty bitty software, heh.