There has been a lot of brouhaha over Ma.gnolia going open source and I’m not sure most of it is justified. There are certainly features that work to Ma.gnolia’s advantage, but even though embracing open source and data portability (among other features) improve the service, they are unlikely to make it competitive.
Not only is Ma.gnolia minuscule compared to Yahoo’s Delicious (recently relaunched to version 2.0), but compared to Yahoo’s Buzz and Digg, even Delicious itself is minuscule and that’s not about to change.
The times, they’re a-changin’
The launch of Yahoo’s Buzz was a somewhat controversial move on the company’s part. First, many thought that it would cannibalize the Delicious user base (which I’m now sure it will to an extent), second, it launched with an incredibly exclusive beta and several severe limitations in social capabilities (most of which still exist today), and third, it was yet another large corporation taking a shot at the house that Digg built.
Regardless, it was also a brilliant move and not just for the reasons I’ve mentioned before.