I'm not going to blow this out into a full post, but here's a quick thought:
The only reason that MySpace can get away with blocking widgets is because Facebook doesn't allow widget embeds at all. If Facebook were to open up to widget embeds, MySpace would have to tread more carefully about taking things away from their users.
I'm going to go out on a limb and speculate that an opening up of Facebook would not only put 17M new active profiles into play for widget developers, but it would also go a long way towards keeping MySpace open.


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