I'm not so sure Myspace is unhappy about this. There's traffic, and then there's monetizable traffic, and Myspace seems to still be cleaning up as far as the latter goes. They've got much more convincing revenue streams.
I don't think your conviction is based on the data. MySpace is only profitable because Google blinked. I would love to hear about these "much more convincing revenue streams" of which you speak.
Mark Zuckerberg practically lives at the office. Chris DeWolfe spends half his time chasing starlets. It's quite easy to imagine how that would play out over an extended period of time, in terms of organizational focus and execution.
The average user doesnt know or care what Chris or Mark spend their time doing. They care about the experience. Though I hate the site, I still go to Myspace when I'm at work to listen to tunes. Though I prefer Facebook, as a personal user, Myspace is making way more off of me. (Through my business though, my apps are generating Facebook millions of ad impressions per day.)
Also, ask any app developer where the better ecpms are. We just launched our Myspace apps 2 days ago, but I'll try to give some exact numbers when we've had some more time.
In the end, I think the winner in the monetization wars is going to be the one who provides the better platform and monetizes it better. Though their platform is maybe more painful to develop for, Myspace has a lead there.
