Where Social Networking Needs to Go

Fred Wilson, a venture capitalist in New York, wrote a post on his site recently about social networks. His venture funds haven't invested in the social networking space yet, but looking at the minimal initial investments required and large returns from companies like MySpace makes him wonder if he should jump in. I commented on his post to share my thoughts, but since it was a long comment I figured I may as well just save it here so I can remember what I said later.