[bh23ha]

Ah yes, but with better management both could still be in business.

Or in other words, Starbucks could also have been mismanaged. And http://www.peapod.com/ is still in businesses.

As others in this thread have pointed out, the key distinction between bubble 1.0 and 2.0 is complete nonsense vs. real value.

Most likely currently hugely overvalued value, but still real value.

After bubble 1.0 burst, it hurt the very concept of business on the internet badly.

When 2.0 bursts, a very few companies will close shop, the rest will simply be worth a lot less and lay off people but will return to operating profitably as before.