I am looking into the Appleseed project, open source distributed social networking. Still in beta.
The walled gardens of facebook and myspace and so on are definitely a dead end. Facebook has not really been able to monetize. People want those features, but only idiots are going to subscribe for more than a very nominal sum to pay for them, and most people will not be willing to pay ANYTHING. In five years, maybe less, Facebook will be inhabited only by the kind of people who were still on AOL in 1999.