The Web created an opening where somebody could come out of nowhere. They just couldn' t see their way. It's harder and more expensive to be a large player and jump onto the train after it's already moving. Of course, it's also equally difficult as a small player to make sure you don't get thrown off the train as it gets bigger and faster. A lot of people are taking chances on ideas that may not work.
Most companies fail.
Most ideas don't work out. Hype, by the way, is an essential part of the process. We're all like that. Hype is the way we collectively give each other the courage to change. The hype around the Internet is very similar to the hype that went along with other revolutions.