Good lesson to learn, I guess. Just not sure why it took them so long.
Anyone remember Scoble's buddy Dave Winer shutting down Weblogs.com in 2004? 3000 Blogs shut down in seconds. That was a good lesson on what can happen to your data when you rely too much on a free service. Anyone besides me see some irony here?
We deal with stuff like this in my job all the time. Even worse is the Web 2.0 data future. When you silo data like this, how do you tell different versions of the same data from different places collected at different times apart? How can you keep them in sync when it serves the needs of the Web 2.0 companies to keep each site from communicating?
My kindaboss Jeff Jonas has a good post on this and a good solution - data tethering. Not sure it would ever work with Web 2.0, where data is intentionally insulated and you can get erased for trying to keep data in sync between sites.
The bottom line: when you trust your data to the care of a third party, read up on what you can and can't do with the data you share, and prepare for unintended consequences....