rfouquet
Twitter enjoys a tremendous popularity because of all those celebrities using the service. I mean celebrities like Ashton Kutcher, not like John Gruber. And that keeps the masses coming to Twitter. It does turn away the tech folks though, the people who used Twitter in its very beginning and which are now turned away by its politics.
Looking at the users that are currently using the alpha version you can see that these are mostly tech people - developers, designers, bloggers, artists etc - who are enjoying even the current state, which just has a few hundred users. We don't really mind if the service doesn't scale as Twitter does, that might actually be a good thing. And there are services that proof that paid accounts are a valid and successful way to monetize: look at pinboard.in, for example.