While I think you're right about the reasoning behind the downfall of both companies, I'd like to offer a different angle as to the power of Arrington and Scoble.
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I'm not sure if anyone will remember, but before in a discussion about ownce and its "success" I pointed out that I believed that the only reason it even caught on is that the name Kevin Rose was being thrown around. Now, Kevin probably made some decent coin from Digg and now Pownce, but do you think he really cares about the future of either once he's picked up and moved on to the next project?
Have a look at this:

I think the mention of hype is right on. These bloggers or tech people are moving in and using their influence for personal gain. Maybe it doesn't start out that way, but do you really think Scoble and Arrington will lose much from having either company fail? I don't, they'll pack up and move on to something else. They get free press out of the whole thing and we all know they're great at turning coverage into money.
It's scary really that such high dollar amounts are thrown around with such little regard and to people that don't have a product.

» My favourite photo from 2007 ... Last Reply: 10 months ago by Cas.
Mine would probably be this one:
I'm trying to get into concert photography and have just over 40 sets since starting in July. So when I stepped into the hall quick during a concert and got this shot of one of the drummers, I was pretty happy. Something about how it's so candid, but definitely captures the mood and his personality just strikes me.