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I think your observations are an indictment of social networking in general.
Stratius Marketing, you've got a good point (yeah, free, but it's still an investment of time and space)-- except some of us don't have an unlimited texting plan. I know if I hooked Twitter up with SMS, I'd be over my 200-text allotment in no time, and the value add of it all would be minimal. You're right, though-- being unable to consider SMS is a major flaw in this 'fuzzy math.'
Ernie, yikes! I can't imagine simultaneously using three different Twitter applications-- that's a sign that these folks need to sit down over a cup of coffee and integrate each other's features, or something like that. I'm excited to see these applications grow, assuming they will.
I just thought I'd share my lame insight that the iPhone market may not be limited to the tech-savvy, as you're (reasonably) assuming... Obviously those who have iPhones probably don't have financial issues, but a LOT of the musicians here at Aspen, especially those who are professionals/young professionals (mid-20s and beyond) have them...
I can't necessarily correlate the population here that's tech-illiterate (a lot of people) with those who have iPhones, but I imagine it overlaps somewhat!
(You're telling them all about how cool I am, right?)
Ernie: Good question. My father recently acquired a Touch. I asked him, "So, what applications have you downloaded for the new toy?" Zero. For folks that are more familiar with standard phones rather than smartphone/gadget items, I think the secret lies in instant value and clear purpose.
I think folks naturally ask themselves, "What can this social networking service offer me?" The more answers we can provide to this question, the easier of a time we'll have ensuring their conversion.
I'm currently using Hahlo on my iPhone. I have Twittelator on it also. However, Hahlo is what I mainly use. I only use Twittelator for posting images to Twitter since Hahlo can't do that. Otherwise, like you stated, the Twitter apps suck and I really have no clue on how they could make them better.