If he makes the data API truly open, as he says he will, it is incredibly enabling for a wide variety of 3rd-party applications to build on top. I'm not saying this will happen necessarily, but iter8r could potentially see a whole ecosystem built on top of its platform. That is, of course, if people use access to all the data.
"Iter8r is a social bookmarking website that enables users to post and discover interesting articles and have discussions around them."
Don't mean to be dismissive, but that doesn't really sound like such a compelling proposition. How is this better than HN? Or Delicious? Or Reddit?