Rygterne var sande.
Let's think: Less users than Twitter, but better, richer but not complicated, platform. If you're Google, acquiring users is not your problem, so less users probably translates to better price for more platform.
OR - Tim O'Reilly is right, and this is a timely kille app for the GPhone...
[UPDATE: The bad news: "In order to focus on innovation instead of scaling, we have decided to close new user sign-ups for now." uh oh. I'm getting a strong feeling of deja jot. So far it's taken 11 months to migrate Jot - if that's what they're doing]