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info@alexera.hu
There is room for a Digg style service to grow through the mainstream, but it's just a small matter of hitting enough of the mainstream audience first so that the subject orientation doesn't become niche. But then surely it means you'll need to get a few early adoptors on your side if you want to filter to the mainstream? In which case, if Digg has captured all the early adoptors, maybe it still has a chance to make a crossover to the mainstream.
BTW, people in that group do have some money to spend, and might be more likely to click on ads, were it not for the fact that Google Adsense does such a ham-handed job of identifying products and services that would be of interest to that audience.
And yes, it's notable that AdSense has not been sufficient to bring Digg to profitability (at least as of a podcast that Kevin and Jay did with Mike Arrington last December).
Niche groups want content from their tribe, but things they wouldn't find on their own. I think the value of it may be the very niche-iness you hate.
Conservatives don't go out of their way to read the NYT, except via right-wing blogs. Liberals are not going to buy the UK's Daily Mail because of its politics. And, by the same token, the publishers of the Mail are not going to mess with their approach for fear of ticking off the audience it has built up just for the chance of picking up a few readers outside its core demographic.
Neutral sites will never be able to build up an effective audience, unless they are perceived as biased to a particular ideology. And those that choose an ideology, or have it chosen for them, will be trapped by it. There is a way out for media owners and one that has worked well for the magazine publishers - have as many different properties as you can manage. Kill of those that don't work and be prepared to have new properties take over from the old if an established title starts to falter because its audience has moved on (or died).
Netscape is a relative barren wasteland, because "normal" people with lives don't interact with information the same way over-gadgeted, anti-social boys do on Digg. People who say Digg is the future of news don't understand "real" people.