MSFT/GOOG etc... could always decide to "un-suck" and kill some new hot thing, but it's a deus ex machina and not something you can predict, so it shouldn't really even be a consideration.
...except when it's literally not always the case.
I get where you're coming from but deep pockets and an army of engineers doesn't guarantee success. Google+ never got out of the "it sucks" stage into mainstream success. The legacy of Steve Jobs is also littered with fanciful ideas that never got traction. I guess my point is there is a point to innovating and attempting to try, even as a small player, because there's really no guarantees.
I can't recall the exact story right now, but I recently heard that a well-to-do / highly funded flight project (Langley?) failed, and a short time later, the shoe-string operation by the Wright Brothers was successful.
I think you are missing my point or I did not make it clear because we are in agreement.
"MSFT/GOOG could just do it and kill your [service]" is a very common response to anyone who is launching anything new or groundbreaking and it's also a misguided response.
So worrying that BIGCO will do that is basically a worthless concern and saying that because something is obvious in retrospect that it was inevitable is not particularly useful.
That said, they still can do it and on the rare occasion when they do, instead of doing an acquisition it usually does kill the newcomer. So to the original point, it seems like it's actually becoming more common than less for them to spin something up rather than acquire.
