Seth's post encapsulates much of what IS web 2.0. Web 2.0 is not just social networking. Rather it is the philosophy and business practice of listening and leveraging the power of the people -- whether it is having the community to atomic units of work like tagging photos on Flickr or having members share things like app sharing on Facebook. Most advertisers are so used to one-way media such as TV, print, and radio, they are still using the Internet in the same way -- banner ads, adwords, etc.
Excerpt:
How to create a great website
Here are principles I think you can’t avoid:
1. Fire the committee. No great website in history has been conceived of by more than three people. Not one. This is a dealbreaker.
2. Change the interaction. What makes great websites great is that they are simultaneously effortless and new at the same time. That means that the site teaches you a new thing or new interaction or new connection, but you know how to use it right away. (Hey, if doing this were easy, everyone would do it.)
3. Less. Fewer words, fewer pages, less fine print.
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