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I think you're scapegoating VC's for normal business practices. The consumer/producer relationship for internet services is distorted by the freemium model. The free access drives consolidation on the best early contender. Once companies have attained a significant amount of market share they can do pretty much anything that they want in regards to user experience. This is particularly important where the magnitude of the user network is directly correlated to the quality of the product. The reciprocity of the consumer/producer relationship dissolves and the network of users can be subjected to major changes without a feasible option for recourse.

This is basically localized forms of market monopolization. The internet is always pro-producer because the user has very little influence in the relationship.




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