I am not defending the current model but the reality is that there isnt another one for those trying to do a free service. Therefore providing some extra featur

I am not defending the current model but the reality is that there isnt another one for those trying to do a free service. Therefore providing some extra features for those who pay is the way to go if you dont want to depend on ads. Other than that if your web service scope is people who pay only then that means that probably in position to pay for marketting your product. To even have a chance to grow as big as youtube you have to have the capacity to exist without equal growth in terms of revenue. Thats the nature of the web services success and I don't see the reason to call it bubble. If it wasn't risky more people would do it. Contrary to that model, you can be one of the many successful sites that are not huge but make money by selling their product or service. Other than that the article is not dead on because is very generic. Just because not all attempts to create a business succeed doesnt mean there is a bubble.