> I don't see the business model working.

Same. It's a nightmare from a Porter's Five Forces perspective.

There will be a ton of businesses competing in this space, and there will be something of a moat due to how capital intensive the business can be, but there will still basically be infinite competitors.

Great for consumers.

Well in reality AWS will just host one of them and most companies will use that

Like how snapchat kind of fell off because the feature could just be a subset of instagram

It seems like it would just become a commodity like EC2