Jason Calacanis wonders if competing sites will cut into Digg's future:

Someone speculates today that digg is going to take a hit from the hundreds of smaller sites that are going vertical in the social news market place. They make a really nice long list of all the social news sites (let's not call them digg-clones because delicious is really responsible for the current movement). The concept is why would folks go to digg if they could got to a more focused site in a vertical?!

There's a simpler problem, IMHO - revenue. I was listening to TWiT this afternoon, and Michael Arrington mentioned that they just got another round of financing - which they wouldn't need if they were revenue positive. So my question is - will they survive long enough to get bought? Will a large corporate owner decide that the name recognition is worth whatever their asking price is?

A related question: In the absence of Sarbanes-Oxley, wouldn't Digg be a public company by now? How many other small tech companies are in the same mid-state, unable to go public due to the high costs of SarbOx?

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