Part of your question supplies the answer. True, costs may be becoming more managable, and resources becoming more abundant, but as that happens you start to r

Part of your question supplies the answer. True, costs may be becoming more managable, and resources becoming more abundant, but as that happens you start to run into issues with market saturation causing not just problems with supply but with demand. Economists and sociologists alike have long preached to the choir that too much of one thing in a society can be bad for the big picture. Take for example the problem with American Obeisity. The more buffet items a restaurant displays, the more a person is likely to eat while negatively effecting their health overall. Make the parallel to these startups, social content sites are now a dime a dozen, feed aggregators are everywhere (so much so that there are even aggregators that aggregate other aggregators) and consumers find themselves overwhelmed with the choices they have to make when selecting the simplest problem they need to address. When this happens, people often opt not to do anything and would prefer a direct fix through another means than to go and experiment with what's new on the market. This is essentially why you see very few startups aimed to address corporate interests where obviously the potential to make money lies, but instead targets a much smaller sector of the market (37Signals for example). All of that said, prices and income potential for the startup in my opinion is coming very close to reaching a stalemate, while supplies continue to grow, demand is going to drop.