Senh: In terms of analysis, the article is similar to what I wrote. Mainly, Facebook, Twitter, and Yahoo Buzz got into link sharing and pretty much pushed Digg aside. Digg execs attributed the lost in traffic to Google's new algorithm which resulted in less referral traffic to Digg. The article also has an in-depth write-up of its history.
Senh: Heh, Google got jipped four years ago because they bought into the hype. The click-through rates on social networking sites are too low compared to content sites, so Google overpaid.
The latest version of Digg - aka Digg v4 - is getting a lot of negative feedback from its users, especially the power users. They’ve lead a Digg Revolt by pushing articles from their rival, Reddit, to Digg’s homepage. Now, they’ve defaced the site’s comment system by littering it with anti-Digg comments.