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Let me start out by saying I think that the TwitBin Firefox Add-on is nice and useful. Makes those who feel like they need to let us know that they just went to the loo a bit easier. I got the news about this (like others here and here) yesterday but didn't think it was worthy of a post – guess I was wrong!
But alas, here is why I struggle with apps like this. The TwitBin team spent $1k and 2 weeks building this app which pulls and pushes data from Twitter. But it includes an advertisement. Does any of this money get returned to Twitter? I doubt it. I think that TwitBin needs to return a percentage of the income to Twitter. As a sort of licensing fee.
Second, as I noted before, building an app that relies solely on a market untested product seems silly. On the other hand, it gets this firm, InfiniMedia some great publicity for their agency. So while normally I am against this build on top of another untested product, this time it might actually prove valuable.
Of course once Twitter builds their own (would take 2 weeks and $1k right?) then TwitBin will perhaps go into another bin :-P