Svpply's numbers have been pretty stuck for a while (http://dl.dropbox.com/u/120/Screenshots/tcr0.png) and they're competing in a market with tons of competitors that were doing better than them, specifically Wanelo (http://dl.dropbox.com/u/120/Screenshots/-~1c.png) but also Fancy (https://thefancy.com).

You have to become huge to create a VC-backable business on the back of other affiliate programs and it didn't look like they were on that path. This was a good move on their part.

We should really stop using Compete as evidence for anything. Not only are they frequently an order of magnitude off, they're oftentimes not even directionally correct in their movements.

Other than that, your points are valid, especially wrt affiliate based companies.

I would argue that Pinterest was what crushed them

When Salesforce.com acquired Heroku I was horrified that things were going to go downhill. Heroku has continued to get better and better as far as i'm concerned! Hopefully the trend of acquihires and product shutdown stops though.

There are definitely exceptions to the rule. Unfortunately, I'm pretty sure eBay isn't one of them.

I felt the same way when they picked up Desk (formerly Assistly). I have been pleased that they continue to push the product forward since the acquisition.

Salesforce has mostly bought things and kept it going