Social Media isn't about status updates.

It's not about the numbers of people who visit the various sites, or how much time they spend there. It's about the power inherent in the network of connections we ALL have with each other. These networks have always existed. The only thing different now is the visibility and size of those networks. Here's an interesting paper related to the understanding of social networks within the context of social policy. 

There were 10 pages in particular that made me want to share this RSA document (pages 19-29). This is the explanation of the Watts "Simple model of global cascades on random networks" and is much more interesting than it sounds. Particularly when you think of the idea that while the model, when run, showed considerable variation in results. The application of the ideas in a marketing context could mean the difference between success and bankruptcy.

RSA Pamphlets - N Squared - Public policy and the power of networks