Unlike some older technologies (notably, Flash and PDF), Web 2.0 ideas are not inherently bad for users. They can be highly effective; we sometimes see examples of usability-enhancing Web 2.0 designs in our studies. But it's more common to find Web 2.0 ideas that either hurt users or simply don't matter to users' core needs. While the latter case might seem innocent, irrelevant website "enhancements" diminish profits because they indicate a failure to focus on those simpler design issues that actually increase sales and leads.... read on!
(Excerpt taken from http://www.useit.com/alertbox/web-2.html)
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