Though I found Buzz to be a bit more useful than Wave I now have to declare it dead. While Wave died because it made to sense to anyone how to use it, Buzz died because it made no sense to anyone why they would need it. Going against Facebook and Twitter this late in the game with something that added no benefits and just cluttered you page was pretty stupid.
This is what I think is going on with Microsoft and Google.
As big companies they can cut costs but can't come up with the cool next thing. Small studio start ups are needed to produce the thousands of mostly doomed new ideas so one or two can become YouTube of Facebook.
After the first crop of Web 2.0 products like MySpace, Flickr, GeoCities, and Delicious sold out only to be crushed it is clear that new smart start ups are holding on to their independence longer.
With none of the newer Web 2.0 or any of the Web 3.0 major players interested in selling out Microsoft and Google are kind of stuffed, pushed to the back space as companies that did not even exist 10 years ago take over the web.