There's an interesting article by Stephanie Olsen up on CNET regarding the (seemingly?) ever-changing widget landscape.  While the story mainly talks about purely social/entertainment widgets -- Slide, RockYou, Flickster, etc. -- it's still an interesting read.  One of the more provactive parts of the story:

"...Can one application company on Facebook build a few-hundred-million-dollar business? I'm personally skeptical," said Navin Chadda, a venture capitalist with the Mayfield Fund, which is invested in Slide and widget distribution network Gigya."

Note, this is not the area of business where we at NewsGator widgets focus our attention, though you can place our widgets on Facebook.  We have stayed out of platform-specific (i.e., Facebook only) widgets since our experience has shown that the reach and interaction of widgets can -- potentially -- be significantly higher if the widget "lives" in many places throughout the social web as opposed to one platform, like Facebook.

You can read the full article here.