"From my perspective, not only has Linden Lab made it's share of blunders over the years but the users themselves have become exceedingly bitter and arrogant and it's hard to remain encouraged around swarms of either miserable or despondent creatures. "
I think there is a lot of truth to this and maybe this is down to a misunderstanding or lack of faith too on the part of the userbase. I think the problems as they've been variously described are pretty accurate, but I also still have a lot of faith in this medium and the medium itself seems stronger than the problems. Many of the issues with SL, I think, have originated in the encroachment of real world business interests and principles that aren't really compatible with whatever it is SL is made of. In spite of this however, whatever it is SL is made of still persists and is quietly improving in its overall potential. Mesh, mono, http messaging, controls over chat spam etc.; beneath the mess of UI confusion, problems of internal competition and diminishing traffic etc., other core aspects of user control are improving. I thought it telling that someone said it was better than TV - this seems to me to be exactly in keeping with what SL could be if handled right. For some, its a universal creative medium through which they can create multi-sensual experiences; for others, it's an interactive medium where they can have multi-sensual experiences. In this, it's an extremely potent and novel arts medium and it's with the disappointment of this ideal not being fulfilled that so many residents have been alienated. They could sense the potential, but competing with apps and social networks, the real world and the 2D net, somehow got in the way. I still personally have a lot of faith in what SL is. Running it as a business with profit-based aims, as usual, seems to be the real killer, but how could it be otherwise and persist? Though I am of the view that SL has enough going for it that running it from the perspective of passion would look after its sustainability, I doubt the investors are as confident and willing to take such risks. As such, they need to strike a balance between the two - profitability and the core meaning of the medium (which is increased involvement and immersion). I personally have enough faith in the substance of the SL experience to think that these problems are not insurmountable. If not, someone else will take up the idea and do it better, but until that time, I'm pretty committed to what is happening here.
(An afterthought worth emphasizing: SL had no business fearing and competing with social networks and apps. Just because they are online does not mean they are of the same nature. Apps and social networks are concerned with virtualizing real life and the self; Second Life is an exploration of being rid of the constraints of real life, living outside its limits. In this, SL is chosing to compete with animals outside its own food chain. See here for more on that: http://innegative.wordpress.com/2011/09/03/secondlife-virtual-social-network-culture/ )