I highly recommend you read Business Week's commentary on the social media/tech bubble. It's pointed and not overly dramatic or post-apocalyptic.
There are some great quotes within. Here's a few:
1. This latest craze reflects a natural evolution. A focus on what economists call general-purpose technology—steam power, the Internet router—has given way to interest in consumer products such as iPhones and streaming movies. "Any generation of smart people will be drawn to where the money is, and right now it's the ad generation," says Steve Perlman, a Silicon Valley entrepreneur.
2. Venture capitalists have become consumed with finding overnight sensations. They've pulled away from funding risky projects that create more of those general-purpose technologies—inventions that lay the foundation for more invention. "Facebook is not the kind of technology that will stop us from having dropped cell phone calls, and neither is Groupon or any of these advertising things," he says. "We need them. O.K., great. But they are building on top of old technology, and at some point you exhaust the fuel of the underpinnings."
3. Hammerbacher looked around Silicon Valley at companies like his own, Google (GOOG), and Twitter, and saw his peers wasting their talents. "The best minds of my generation are thinking about how to make people click ads," he says. "That sucks."
4. After quitting Facebook in 2008, Hammerbacher surveyed the science and business landscape and saw that all types of organizations were running into similar problems faced by consumer Web companies. They were producing unprecedented amounts of information—DNA sequences, seismic data for energy companies, sales information—and struggling to find ways to pull insights out of the data.
