But it depends on how it's done. "MySpace + Puppies/Dentists/Classical Musicians" may have a niche audience, but it's not in need of funding from a VC.
Agreed. People need to stop looking at things as "social networks". There's will always be a ton of room to build technologies that connect people. Some may call that "social networking".
It's like someone saying in 1999, someone needs to stop building these "websites".
It would also be the same in the 80s/90s with someone saying, people need to stop building this software stuff.
If youre building something that connects like minded people together, there is value there, hands down. Whether its a venture backed type company is a case by case issue.
