This is a perceptive piece. I should men tion that I think it partially confirms my assessment of Facebook's Beacon launch strategy, which was to build awareness through fear/backlash and then re-tool to the edge of user tolerance for privacy/utility trade-offs.
The commodification of online advertising services/platforms and its increasing irrelevance to the user present a challenge, and an opportunity.
Each user determines who will get into his own garden, whether friends or vendors. ...Value is being created in users' own walled gardens, which they will cultivate for themselves in real estate owned by the social networks.
I don't think this means that everything becomes a social network, but companies should think hard about how to be friends with their best customers when traditional advertising (even web advertising) is so easily AdBlocked, DVR'd, or simply ignored.