All of these distributed model guys keep disregarding and not addressing the fact that people simply don't want to deal with hosting their own web server, no matter how simplified it is.
It should be noted that most people simply don't want to deal with hosting their own mail server, either. Not that I disagree with most of the rest of your post.
I'm confused by the word "unmonetizeable" there. I don't see that email is unmonetizeable, and surely monetizeability is a good thing if you want third parties to adopt a protocol. Did you mean "monetizeable"?
Anyway I think email and social networking hosting are both monetizeable. Social networking is probably more so, which is a good thing in terms of getting people to host it. It's true that there isn't a strong standard protocol, but that doesn't seem to me like an intractable problem. I agree with pretty much all the issues you've raised, but I don't see it as an impossible medium-long term goal.
It should be noted that most people simply don't want to deal with hosting their own mail server, either. Not that I disagree with most of the rest of your post.