I have to disagree with his characterization of Bubble 2.0. While there is likely a bubble in the venture capital market, I don’t think the AOL services are the result of a bubble. AOL Search is a tremendously profitable business with margins The New York Times Co. would kill for.
Other services, like My eAddress and Phoneline do have more substantial costs. But those costs are low in comparison to the value of a unique user attracted by one of those.
Disclosure: I work at AOL Search.