Yes, businesses with network effects are very powerful and it is very hard to catch up with the first mover. However, businesses have only won after they have hit the "knee of the curve" and have truly experienced lift off.
Well, today del.icio.us might have huge adoption within the geek community but they are a small niche application with perhaps a few hundred thousand active users. So, we are just at the VERY early stages of a rapidly growing market. Is del.icio.us in a good position? Yes, however, they are not even close to winning yet. In fact, if you check the alexa stats, then you see anything but lift off. You see a site that is just flat, hardly the exponential curve that you would see in a network effects driven business that is really taking off. Ok, Alexa is anything but perfect but the trendline is generally correct.
We are very confident that our site, www.blinklist.com, has a very good chance of emerging as one of the leading players in this space as we continue to rapidly improve our service based on the feedback from our thriving community.
I do have to agree with Steve on one point, there are way too many social bookmarking clones out on the market and over the next year the dust will settle but BlinkList is most certainly going to be one of the players that will be around for a long time to come.
social+bookmarking del.icio.us delicious bookmarking yahoo!