[angelbob]

Do you have a good way to differentiate yourself? You say "all the features I was working on". Do you have a vision for something neat that they haven't done? That would be the factor I'd worry about.

If not -- if they've really done everything you intended to do -- I'd drop it, and take up a different project. If they're not scratching your itch, or not doing it quite right, then there's room in the market, because somebody else probably also has that itch.

To put it another way, would you rather use the product you've been working on (when finished) or the one they just released? If you'd rather use theirs than yours, then they got it right and you're doomed. Quit. If yours would be noticeably better, there's room. Continue.